(All figures are in U.S. dollars)

BEIJING, Nov. 12 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. (NYSE Amex: SHZ) ("China Shen Zhou," or the "Company"), a leading company engaged in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in China, today announced its financial results for the quarter ended September 30, 2009.

Third Quarter 2009 Financial Results

Net revenues for the three months ended September 30, 2009 were $1.72 million, representing a $1.21 million or 41% decrease as compared to the same period of 2008. The decrease in net revenues is mainly because (i) Qianzhen Mining ceased its zinc processing operation as a result of a shortage of ore supplies, and (ii) Xingzhen Mining's processing plant was in trial production, and had a limited number of qualified products for the three months ended September 30, 2009.

For the three months ended September 30, 2009, gross profit was $246,000, which decreased by approximately 50% from $495,000 in gross profit for the same period of 2008. Gross profit margin dropped from approximately 17% for the three months ended September 30, 2008 to approximately 14% for the same period of 2009. The decrease was mainly due to the significant decrease in the price of fluorite products.

For the three months ended September 30, 2009, general and administrative expenses decreased by approximately $1.17 million to $1.38 million as compared to $2.55 million for the same period of 2008. The decrease in general and administrative expenses was primarily due to the Company's tightening of its control of expenses in the current economic crisis.

Interest expenses increased approximately $0.85 million for the three months ended September 30, 2009 as compared to the same period of 2008. The increase in interest expenses was mainly due to the difference in revaluation of the warrant liability.

Net loss for the three months ended September 30, 2009 was $2.15 million, a difference of $0.12 million compared to net loss of $2.03 million for the same period of 2008. Basic losses per share were $0.10 and $ 0.09 for the three months ended September 30, 2009 and 2008, respectively.

Net revenues for the nine months ended September 30, 2009 were $3.06 million, representing a $1.79 million or 37% decrease as compared to the same period of 2008.

For the nine months ended September 30, 2009, gross profit was $467,000 which decreased by approximately 27% from $639,000 gross profit for the same period of 2008. Gross profit margin rose from 13% for the nine months ended September 30 2008 to 15% for the same period of 2009.

For the nine months ended September 30, 2009, general and administrative expenses decreased by approximately $3.29 million to $3.65 million in 2009 as compared to $6.94 million for the same period of 2008.

Net loss for the nine months ended September 30, 2009 was $6.19 million, a decrease of $1.33 million compared to net loss of $7.52 million for the same period of 2008. Basic losses per share were $0.28 and $ 0.34 for the nine months ended September 30, 2009 and 2008, respectively.

Cash and cash equivalents were $1.12 million as of September 30, 2009, an increase of $0.91 million as compared to the balance at December 31, 2008 of $0.21 million.

About China Shen Zhou Mining & Resources, Inc.

China Shen Zhou Mining & Resources, Inc., through its subsidiary, American Federal Mining Group ("AFMG"), is engaged in the exploration, development, mining, and processing of fluorite and nonferrous metals such as zinc, lead and copper in China. The Company has the following principal areas of interest in China: (a) fluorite extraction and processing in the Sumochaganaobao region of Inner Mongolia; (b) zinc/copper/lead exploration, mining and processing in Wulatehouqi of Inner Mongolia; and (c) zinc/copper exploration, mining and processing in Xinjiang. In addition, AFMG owns 100% of Kichi-Chaarat Closed Joint Stock Company, whose major assets include a copper-gold mine located in the Kuru-Tegerek region of western Kyrgyzstan.

For more information, please visit http://www.chinaszmg.com/

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, fluctuation in mineral prices, risks associated with exploration and mining operations, and the potential of securing additional mineral resources, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

    For more information, please contact:

    In China:
     Fulun Song
     Office of the Board of Directors
     China Shen Zhou Mining & Resources, Inc.
     Tel:   +86-10-8890-6927
     Fax:   +86-10-6887-2811
     Email: investors@chinaszky.com
     Web:   http://www.chinaszmg.com

    In the U.S.:
     David Elias
     Investor Relations
     DME Capital LLC
     Tel:   +1-516-967-0205
     Email: dave@dmecapital.com


                           Financial Tables to Follow




             CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                    (Amounts in thousands, except share data)

                                                September 30,    December 31,
                                                    2009             2008
                                                 (Unaudited)       (Audited)
    ASSETS

    Current assets:
    Cash and cash equivalents                   $     1,121     $        205
    Accounts receivable, net                            622              561
    Other deposits and prepayments, net               1,320            1,167
    Inventories                                       3,582            2,958
    Total current assets                              6,645            4,891

    Prepayment for office rent                          353              505
    Available for sale investment                       148              146
    Property, machinery and mining assets,
     net                                             46,602           47,716
    Deferred debt issuance costs                      1,437            1,755
    Total assets                                $    55,185     $     55,013

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
    Accounts payable                            $     4,723     $      3,471
    Fair value of detachable warrants
     liability                                           50               33
    Short term bank loans                             3,602            1,756
    Other payables and accruals                       6,189            4,794
    Taxes payable                                       314              411
    Due to related parties                            2,046            2,666
    Convertible notes payable                        26,627
    Total current liabilities                        43,551           13,131

    Convertible notes payable                                         24,251
    Total liabilities                           $    43,551     $     37,382

    Minority interests                                   --               22

    STOCKHOLDERS' EQUITY:
    Common Stock, $0.001 par value:
    Authorized - 50,000,000 shares (2008:
     50,000,000 shares)
    Issued and outstanding 22,214,514shares     $        22     $         22
    Additional paid-in capital                       25,251           25,251
    PRC statutory reserves                            1,672            1,672
    Accumulated other comprehensive income            4,236            4,020
    Accumulated deficit                             (19,547)         (13,356)
    Total stockholders' equity                       11,634           17,609
    Total liabilities and stockholders'         $
     equity                                          55,185     $     55,013




             CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
                  (Amounts in thousands, except per share data)

                                    For the Three            For the Nine
                                     Months Ended            Months Ended
                                September   September   September   September
                                 30, 2009    30, 2008   30, 2009    30, 2008
                               (Unaudited) (Unaudited) (Unaudited) (Unaudited)
    Net revenue                 $   1,715   $   2,924   $   3,060   $   4,845
    Cost of sales                   1,469       2,429       2,593       4,206
    Gross profit                      246         495         467         639

    Operating expenses:
         Selling and
         distribution expenses         52          36          70          72
         General and
          administrative
          expenses                  1,379       2,550       3,650       6,942
             Total operating
              expenses              1,431       2,586       3,720       7,014

    Net loss from operations       (1,185)     (2,091)     (3,253)     (6,375)

    Other income (expense):

         Interest expense            (936)        (87)     (2,893)     (1,932)
         Other, net                   (25)         48         (67)        590
            Total other
             expense                 (961)        (39)     (2,960)     (1,342)

    Loss from operations before
     income taxes and minority
     interests                     (2,146)     (2,130)     (6,213)     (7,717)

    Income tax benefit                 --          85          --         129

    Loss from operations before
     minority interests            (2,146)     (2,045)     (6,213)     (7,588)

    Minority interests                 --          20          22          65

    Net loss                       (2,146)     (2,025)     (6,191)     (7,523)

    Other comprehensive income:
    Foreign currency translation
     adjustments                       25         301         216       1,857

    Comprehensive loss          $  (2,121)  $  (1,724)  $  (5,975)  $  (5,666)

    Net loss per common share
         - basic and diluted    $   (0.10)  $   (0.09)  $   (0.28)  $   (0.34)

    Weighted average common
     shares outstanding
         - Basic and Diluted       22,215      22,215      22,215      22,215




             CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Amounts in thousands)

                                                   For the Nine Months Ended
                                                         September 30
                                                      2009            2008
                                                  (Unaudited)     (Unaudited)
    Cash flows from operating activities:
    Loss from operations                          $    (6,191)    $   (7,523)
    Adjustments to reconcile net loss to net
     cash used in -
    Depreciation and amortization                       1,868          3,288
    Deferred income tax benefits                           --           (179)
    Fair value adjustment of warrants                      17           (984)
    Accrual of coupon interests and accreted
     principal                                          1,169          1,112
    Amortization of deferred financing costs            1,207          1,179
    Amortization of debt issuance costs                   318            311
    Minority interests                                    (22)           (65)
    Changes in operating assets and liabilities:
    (Increase) decrease in -
    Accounts receivable                                   (61)         1,999
    Deposits and prepayments                             (153)          (443)
    Prepayment for office rent                            152           (540)
    Inventories                                          (624)        (2,871)
    Increase (decrease) in -
    Accounts payable                                    1,252            494
    Other payables and accruals                         1,382          2,804
    Taxes payable                                         (97)            57
    Due to related parties                               (620)         1,032
    Net cash used in operating activities                (403)          (329)

    Cash flows from investing activities:
    Purchases of property, machinery and mining
     assets                                      $        (963)  $    (1,975)
    Sales of property, machinery and mining
     assets                                                241            --
    Net cash used in investing activities                 (722)       (1,975)

    Cash flows from financing activities:
    Proceeds from short-term borrowings          $       1,846   $       446
    Net cash provided by (used in) financing
     activities                                          1,846           446

    Foreign currency translation adjustment                195          (629)

    Net increase (decrease) in cash and cash
     equivalents                                           916        (2,487)

    Cash and cash equivalents at the beginning of
     the period                                            205         2,949
    Cash and cash equivalents at the end of the
     period                                      $       1,121   $       462


    Non-cash investing and financing activities
    (None)

    Supplemental disclosures of cash flow
     information
    Cash paid for interest expenses              $         166   $       254
    Cash paid for income tax                     $          --   $        --

SOURCE China Shen Zhou Mining & Resources, Inc.

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http://www.chinaszmg.com