SOURCE: Elray Resources, Inc.

Elray Resources, Inc.

April 06, 2010 06:30 ET

Elray Resources Acquires Prime Property in El Oro Province, Ecuador

Historic Mining Records Show Average Grade of 14.5 Grams/Ton of Gold

LAS VEGAS, NV--(Marketwire - April 6, 2010) -  Elray Resources, Inc. (OTCBB: ELRA), an environmentally-driven mining and exploration company, is pleased to announce it has secured a prime exploration property, known as Picacho, in Ecuador's legendary El Oro Province, southeastern Ecuador.

Records show that the major regional mining company SADCO extracted over 4.5 million ounces from the region between 1905 and 1950, marking the area as prolific, with an average grade of 14.5 grams/ton of gold.

Active projects in the area include Dynasty's Zaruma, Dynasty and Jerusalem projects which between them have over 2 million measured and indicated ounces of gold, with over 3 million ounces inferred.

"Picacho is a major strategic asset for Elray," stated Mr. Barry Lucas, Executive Chairman of Elray Resources, Inc. "This area has produced millions of ounces of gold, with a history dating back over 450 years. Until modern times the majority of this mining has been done by individual miners, using very basic and primitive extraction techniques." 

CIBC World Markets recently stated that, "We continue to expect precious metals to exhibit strong performance over the next few years, albeit at the cost of added volatility, which we consider normal and, arguably, healthy. We are providing arguments to support our belief that we are not in the midst of a gold bubble."

The report went on to highlight several fundamental factors supporting the gold price, including stronger investment demand, safe haven investment status, and the lack of growing gold mine supply.

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 South America. Elray Resources, Inc.'s, primary objectives are to source projects, conduct geological assessments and seek Joint Venture partners to develop the properties.

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This press release may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the company's expectations, objectives, anticipations, plans, hopes, beliefs, intentions, or strategies regarding the future. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. 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.

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