Arehada Mining Limited
TSX : AHD

Arehada Mining Limited

November 16, 2009 11:27 ET

Arehada Reports Third Quarter Results and a Return to Profitability

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2009) - Arehada Mining Limited (TSX:AHD)("Arehada") today reported its third quarter results as well as providing an update on its financial conditions.

Revenue for the quarter was $6,031,049 from the mining of 67,478 tonnes of ore compared to $7,565,106 from 109,586 tonnes in the same quarter last year. The net profit of $1,387,810 or $0.008 per share in Q3 2009 compares to a loss of $1,363,432 or $0.008 per share for the same quarter in 2008. The profit is primarily due to the increase in metals prices and a significant improvement in head grades.

During the quarter, Arehada conducted mining operations at a rate of approximately 823 tonnes per day and operated 82 days during the period which is significantly less than the average rate of 1,501 tonnes per day during the same period last year due to the targeting of higher grades.

Head grades of approximately 3.36% zinc and 2.43% lead resulted in an average combined recovery rate of 89%. Silver head grades of 89.35 grammes per tonne met an 82% recovery factor from the lead concentrate.

These grades are significantly improved over the average grades for 2008.

The Company is also pleased to report that during the quarter it paid off its outstanding short terms loans and the overdue principal and interest on its long term loan to the Agricultural Bank of China.

In addition the Company received a repayment of RMB57,000,000 ($ 8,950,000 CDN) of the related party loan from Baiyinhanshan Mining Group Limited, a company controlled by Messrs. Steve Fan Wang and Tom Zhen Wang, directors, officers and controlling shareholders of Arehada.

"We are very pleased that the Company is back to profitability", commented Steve Fan Wang, Chairman of the Board. "With base metal prices increasing in recent months, and an improvement in head grades we were able to significantly improve results."

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.

Contact Information