Elray Resources, Inc.
OTC Bulletin Board : ELRA

Elray Resources, Inc.

April 23, 2009 09:15 ET

Elray: Zircon Bucks Downward Commodity Price Trend

LAS VEGAS, NEVADA--(Marketwire - April 23, 2009) - Elray Resources, Inc.(OTCBB:ELRA), a technically-driven mining and exploration company today welcomed recent comments from commodity industry analysts.

Mineral commodities used to whiten ceramic dishes and make television screens are holding up despite the commodities sell-off, Goldman Sachs JBWere said recently, raising its price forecasts for zircon and titanium dioxide.

Goldman Sachs JBWere recently issued it's a gloomy commodities outlook as industrial activity in China and elsewhere slowed, forecasting iron ore prices to tumble 30 percent next year and steelmaking coals 43 percent.

Goldman Sachs JBWere also substantially lifted its price forecasts for zircon as well as modestly raising high grade titanium dioxide price forecasts.

"Despite the weak outlook for global commodities, zircon and high-grade titanium feedstocks are bucking the trend as supply concerns come to the fore," Goldman analyst Malcolm Southwood said in a report on the so-called minerals sands sector. In November Zircon was already selling for as much as $900 a tonne for first-half 2009 delivery, he said.

"This is extremely good news for Elray," commented Mr. Barry J. Lucas, Executive Chairman of Elray Resources Inc. "We have recently signed a joint venture agreement for what is potentially a major Zircon Sands resource in Indonesia, putting us in a very strong position to build shareholder wealth during the coming potentially turbulent times. In fact, gold and zircon, two of the main commodities we are focused on, look ideally placed to weather the storm."

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. Elray Resources, Inc.'s, primary objective is to source projects, conduct geological assessments and seek Joint Venture partners to develop the properties.

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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