SOURCE: Elray Resources, Inc.

October 10, 2008 16:00 ET

Elray Resources Building Presence in Areas of Known Gold Deposits

Gold Continues to Be Safe Haven During Financial Crisis

LAS VEGAS, NV--(Marketwire - October 10, 2008) - Elray Resources, Inc. (OTCBB: ELRA), a technically-driven mining and exploration company, is pleased to provide information to its shareholders on the Cambodian Gold Mining Industry.

The gold mining industry within Cambodia is currently in a state of growth and although considered small-scale by international standards, the scale and extent of operations is increasing. Sector expansion has been characterized by an increasing number of miners employed, ever more complex and deeper mine excavations, and the introduction of chemical-based gold recovery techniques that represent a movement up the technology curve.

In 1975 twelve gold deposits were known to exist within Cambodia having been identified by French geologists. Ten gold deposits were located in the western regions of Cambodia with a further two located in northwestern Cambodia.

Within a few years, seven new significant gold deposits had been discovered by local farmers in the northeast, instigating a 'gold rush' to the region.

There are currently 19 known significant gold deposits in Cambodia.

Gold continued its strong upward trend with the New York Spot Price closing at over $910 on Thursday evening.

Darius McDermott, the managing director of Chelsea Financial Services, says: "Gold tends to glimmer brightest under the backdrop of shaky equities, given its traditional negative correlation to rising stock markets. Time after time, in financial crisis, gold is looked upon as a refuge and safe haven for distressed investors rocked by falling share prices."

About Elray Resources, Inc.

Elray Resources, Inc. is a junior exploration and development Corporation which has successfully accumulated a portfolio of five highly prospective, heavily mineralized mining tenements in South-East Asia and Mexico. Elray Resources, Inc.'s primary objective is to source projects, conduct geological assessments and seek Joint Venture partners to develop the properties.

Please visit www.ElrayMining.com for more information.

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.

Contact Information

  • Investor Relations:
    Jake Harris
    Phone: (347) 410 9782
    Email: Email Contact