SOURCE: Elray Resources, Inc.

Elray Resources, Inc.

December 10, 2009 12:45 ET

Ecuador Poised for Exceptional Growth in Mining Sector

Elray Resources, Inc. Well-Positioned With Its Picacho Property in South-Eastern Ecuador

LAS VEGAS, NV--(Marketwire - December 10, 2009) - Elray Resources, Inc. (OTCBB: ELRA), a technically-driven mining and exploration company with operations in SE Asia and South America, is pleased to report that numerous agencies and institutions expect that Ecuador's Mining sector will be a major engine of growth in the coming years.

Key Facts:

--  Geological studies performed by the British, Swedish and Ecuadorian
    Geological Surveys through the late 1990s have suggested that Ecuador has
    tremendous potential for discovery of new, economic ore deposits.
--  All business in Ecuador is transacted in US currency, encouraging
    stability, inward investment, and leverage to the gold price without
    currency risk.
--  The World Bank financed a project to put the mining tenement registry,
    or Catastral, on the Internet to make it more transparent and corruption
    free, allowing Ecuador to avoid many of the problems of concession overlap,
    which is prevalent in the rest of South America.

"Like Chile to the south, who has enjoyed tremendous mining successes, we believe Ecuador has the key elements required to see its mining sector explode," commented Mr. Barry Lucas, Executive Chairman, Elray Resources, Inc. "These elements include excellent geological potential, a stable, dollarized economy and a business oriented government. Couple this with the incredible gold bull market that we are currently experiencing and you have a potent combination of advantages. We believe that Elray has positioned itself strategically to capitalize on these advantages."

The National Australia Bank said this week that it expects Gold Prices to enjoy steady and sustained rises over the course of 2010, Reuters reports. The 17th-largest bank in the world believes the yellow metal will average $1,100 per ounce during Q4 2009 and $1,149 per ounce in the first three months of next year. Furthermore, it sees gold averaging $1,174 per ounce in the second quarter, before climbing to $1,204 per ounce in Q3 and reaching $1,234 per ounce in the final quarter of 2010.

Meanwhile, Michael Hewson, an analyst at UK-based derivatives firm CMC Markets, predicted that the metal climb as high as $1,500 per ounce in the future.

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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