SOURCE: Elray Resources, Inc.

Elray Resources, Inc.

April 21, 2010 06:30 ET

Elray Resources' Ecuador Property Has Infrastructure to Sustain Large Mining Production

Exploration and Production Costs Lower in Developed Area of Ecuador as Gold Continues to Trade Above $1,100 per Ounce

LAS VEGAS, NV--(Marketwire - April 21, 2010) -  Elray Resources, Inc.(OTCBB: ELRA), a global exploration and production mining company with a portfolio of valuable properties, is pleased to confirm that the infrastructure is in place to allow aggressive development of the company's Picacho property in south-eastern Ecuador.

And the price of gold continues to hover above $1,100 with Societe Generale's commodity analysts recently commenting that there is a long-term endemic bullishness about gold in India and rising concerns about inflation in China. Therefore, they are still expecting gold to rise even further, forecasting a $1,400 average for 2011.

The Picacho area is now fully accessible by four wheel drive vehicles, with a total journey time of less than three hours from Machala, the regional capital. Machala is a growing city that is not very far from the country's largest city, Guayaquil. In addition, the city is very close to Puerto Bolívar, one of the world's largest shipment points and deep sea ports.

The region has a good electrical grid in place with high voltage lines within range of the development. In addition, there are sufficient water resources with the nearby Amarillo and Calera rivers being able to supply project needs.

"Good quality infrastructure such as we have around Picacho significantly decreases the costs associated with both exploration and going into production," commented Mr. Barry Lucas, Elray's Executive Chairman. "Project viability is hugely influenced by the quality of infrastructure, and we are happy to report Picacho and surrounding areas are very well served."

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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