SOURCE: Elray Resources, Inc.

Elray Resources, Inc.

December 21, 2009 07:30 ET

Elray Resources, Inc.'s Picacho Property Contains Extension of a Historically Prolific Vein Structure That Has Yielded Millions of Ounces of Gold

LAS VEGAS, NV--(Marketwire - December 21, 2009) - Elray Resources, Inc. (OTCBB: ELRA), a technically driven mining and exploration company with operations in S.E. Asia and South America, is pleased to report that the series of Mesozoic era basaltic flows on the west of the property have been confirmed as extensions of the Abundancia vein, which has been intensively exploited for over 400 years, yielding millions of ounces of gold.

"We are pleased to report that this system is a north-eastern continuation of the main system of veins, which have been exploited in the Zaruma-Portovelo area since recordkeeping began," commented Mr. Barry Lucas, Executive Chairman, Elray Resources, Inc. "This is further confirmation to management that this area has immense potential. The Company will be focusing on this, and other areas within the property for development."

Gold prices continue to shine and Chris Hossain, senior sales manager, ODL Securities, recently commented that "Luminaries such as Jim Rogers have said we will see $2,000 within the next decade, and it is striking to see that Paulson has announced he is starting a gold-backed fund in the New Year, including $250m of personal investment. Nothing speaks louder than putting your money where your mouth is."

David Wilson, director of metals research at Société Générale, commented, "We expect money to surge into gold exchange-traded funds, which could push the price up to $1,400 and it could well reach $1,500 in the middle of next year."

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. Please visit

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's expectations. 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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