China Shen Zhou Mining & Resources Announces Approval of Mining License

Company Anticipates 200,000 Metric Tons of New Processing Capacity and

Approximately $15 Million Increase in Sales Revenues Through 2008

    BEIJING, Sept. 5 /Xinhua-PRNewswire-FirstCall/ -- China Shen Zhou
 Mining & Resources, Inc. (OTC Bulletin Board: CSZM), a leading company in
 exploration, development, mining, and processing of nonferrous metals and
 other minerals in the PRC, announced today that it has obtained approval
 for a mining license for one of its subsidiaries, Xinjiang Xingzhen Mining
 Co., Ltd. ("Xingzhen Mining"), from Xinjiang Bureau of Land and Resources.
 The initial mining period for the license is six years, from August 2007
 until August 2013.
     Xingzhen Mining operates Keyinbulake Multi-Metal Mine, which is located
 in Buerjin County, Aletai Prefecture, Xinjiang Uygur Autonomous Region,
 P.R.China.
     Currently the overall mining area is 1.955 square meters.
     With the mining license, Xingzhen Mining will expand its business of
 exploration only to the mining of zinc, copper and other accompanying non-
 ferrous metals. Since early 2007, Xingzhen Mining has been building a new
 mining and processing plant with the annual processing capacity of 200,000
 metric tons. The plant is expected to be completed by the end of 2007. The
 new plant is estimated to manufacture 200,000 metric tons of copper and
 zinc, and contribute about $15 million to the total sales revenues in 2008.
     "We are pleased with the final approval of the mining license for
 Xingzhen Mining. With the new processing capacity of 200,000 metric tons
 per year, we anticipate our sales revenues will increase significantly in
 2008," said Ms. Jessica Yu, CEO of China Shen Zhou Mining & Resources. "We
 will continue to focus on our expansion strategy, adding to our current
 production capacity, increasing of exploration activities and acquiring
 more mineral resources," added Yu, "besides, we will look at both domestic
 and foreign large-scale mine acquisitions and we are confident these
 initiatives will position us well for long-term growth."
     About China Shen Zhou Mining & Resources, Inc.
     China Shen Zhou Mining & Resources, Inc. conducts all of its business
 through its subsidiary, AFMG, which, in turn, conducts its business through
 its Subsidiaries. The principal business of AFMG is the exploration,
 development, mining, and processing of fluorite, zinc, lead, copper, and
 other nonferrous metals in the PRC. AFMG has two principal areas of
 interest in the PRC: (a) fluorite and zinc exploration in the
 Sumochaganaobao region of Inner Mongolia Autonomous Region; and (b)
 copper/gold exploration in the Yangye Huayuan region of Xinjiang Uygur
 Autonomous Region.
     Safe Harbor Statement
     Certain of the statements made in the press release constitute forward-
 looking statements within the meaning of the Private Securities Litigation
 Reform Act of 1995. These statements can be identified by the use of
 forward- looking terminology such as 'believe,' 'expect,' 'may,' 'will,'
 'should,' 'project,' 'plan,' 'seek,' 'intend,' or 'anticipate' or the
 negative thereof or comparable terminology. Such statements typically
 involve risks and uncertainties and may include financial projections or
 information regarding our future plans, objectives or performance. Actual
 results could differ materially from the expectations reflected in such
 forward-looking statements as a result of a variety of factors, including
 the risks associated with the effect of changing economic conditions in The
 People's Republic of China, variations in cash flow, variations in new
 product development, risks associated with rapid technological change, and
 the potential of introduced or undetected flaws and defects in products,
 and other risk factors detailed in reports filed with the Securities and
 Exchange Commission from time to time.
     For more information, please contact:
 
      Sterling Song
      Senior Investor Relations Manager
      China Shen Zhou Mining & Resources, Inc.
      Tel:   +86-10-6887-2811
      Email: investor@chinaszky.com
 
 

SOURCE China Shen Zhou Mining & Resources, Inc.