Arehada Mining Limited

Arehada Mining Limited

August 31, 2009 15:00 ET

Arehada Receives Partial Repayment on Related Party Loan

TORONTO, ONTARIO--(Marketwire - Aug. 31, 2009) - Arehada Mining Limited (TSX:AHD) ("Arehada") today reports that it has received repayment in the total amount of RMB 57 million 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. After this repayment, the related party loan will have approximately RMB 21 million outstanding. Arehada will use the repayment amount to pay down the principal of the bank loan from the Agricultural Bank of China.

Arehada is also pleased to report that the mining operation is proceeding well and the combined grade of lead-zinc has reached 5.8% on July 2009, which has been improved significantly this year from last year.

"We are very pleased that Arehada is returning to a positive position in both operational and financial conditions", commented Steve Fan Wang, Chairman of the Board. "We believe the recovery of economy in China will drive the base metal price to continuously rise in the second half of the year. We hope to significantly increase our concentrate output in the third quarter. If the market is as what we expected, we expect to start new exploration project on other two areas of mineralization: zone? in the centre and Zone in the southwest part of the exploration area of Arehada, to increase resource and reserve. As a mining company, resource and reserve are vital to our sustainable development".

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, the Company's expectation to increase the concentrate output and the Company's plan to expand its exploration activities. 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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