China Shen Zhou Announces Sumochaganaobao Fluorite Mine Asset Assessment

BEIJING, July 14, 2011 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. (NYSEAMEX: SHZ), ("China Shen Zhou" or the "Company"), a Company engaged in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in China, today announced that SRK Consulting China Ltd. (SRK) has completed an independent assessment of the current status and prospective future production of the Sumochaganaobao Fluorite Mine ("Sumo Mine") resource, and provided an independent technical report containing Mineral Resource and Ore Reserve information.

The SRK project team conducted two site visits to the Sumo Mine located in Siziwangqi, Wulanchau City, the Inner Mongolia Autonomous Region, from July 7-11, 2008 and between November 23-26, 2010. SRK conducted field sampling verification on the 850m level being mined in January 2011. SRK also verified the mineral analysis, duplicates from sampling at the 880m level used to provide guidance to mining activities.

MineSight® (Ver. 6.00-03) software was used by SRK to estimate the mineral resources and ore reserves of the Sumo Mine and model a long schedule. The statements on mineral resources and ore reserves were prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 'JORC Code') 2004 edition. Mineral Resources are sub-divided, in order of decreasing geological confidence, into Measured, Indicated and Inferred categories. Ore Reserves are sub-divided, in order of decreasing confidence, into Proved Ore Reserves and Probable Ore Reserves.

SRK established a database for resource estimate, and based on the current mining operations, estimated the existing resources of the Sumo Mine. The following parameters are used by SRK to create the mineralized zones on cross sections:

• Cut-off grade: low grade ore: (CaF2) equal to or greater than 20.0%, high grade ore: (CaF22) equal to or greater than 65.0%,
• The minimum mineable thickness: low grade ore 1.0 meter, high grade ore 0.7 meter;
• The maximum dilution thickness: low grade ore 2 meter, high grade ore 0.7 meter.

At December 31, 2010, SRK's estimations for the Sumo mine are as follows:

• Low-grade Measured Mineral Resource is estimated at 415 kilo tonnes (kt) with a 46.78% calcium fluoride (CaF2) grade. High-grade Measured Mineral Resource is estimated at 623kt with a 81.71% CaF2 grade.
• Low-grade Indicated Mineral Resource is estimated at 1,052kt with a 43.16% CaF2 grade. High-grade Indicated Mineral Resource is estimated at 539kt with a 75.76% CaF2 grade.
• Low-grade Inferred Mineral Resource is estimated at 3,146kt with a 42.60% CaF2 grade. High-grade Inferred Mineral Resource is estimated at 1,485kt with a 78.98% CaF2 grade.

Note: the above Measured and Indicated Mineral Resources, which were estimated by SRK, are inclusive of those Mineral Resources modified to produce the Ore Reserve.

The mine has an established, robust mining and haulage system, together with processing and supporting facilities, and an efficient and long-term sales network. Based on the schedule of mining block as well as various annual production plans, SRK has estimated the Ore Reserves from the 700m level to the 850m level using a cut-off grade of 20.0% CaF2. The estimated Proved Ore Reserve is 818 kt with an average CaF2 grade of 60.43% and the Probable Ore Reserve is 705 kt with an average CaF2 grade of 45.78%. The estimated mining recovery is 75% and ore loss is 10%.

Using the mineable blocks and the mining capacity, SRK produced a mine schedule at a production rate of 150ktpa ("kilo tonnes per annum"). The plan indicates that mineable reserves from 700m level to 850m level are 1,523kt with a CaF2 grade of 53.6%. This part of the mineable reserve can support production at 150ktpa for 10.2 years excluding the inferred resources, which are not allowed under the JORC Code to be included within a reserve and therefore have not been converted into a reserve in this instance. However, inferred resources will inevitably be mined together with the reserve as mining activities progress.

The 2010 average operating cost per tonne ore mined was 359 RMB which is more representative for normal production as 2010 production was continuous.

The Sumo Mine began operations in the 1970s and is currently operated by the Inner Mongolia Xiangzhen Mining Group. The designed mining capacity is 300,000 tonnes per annum ("tpa"). According to production data from 2008 to 2010, the average actual mining capacity was 124,000tpa. Lump ore is sold directly and fine ore is processed before selling.

The Sumo Mine has an old and a new ore processing plant (hereinafter referred as "old plant" and "new plant"). The old plant was put into operation at the end of 1989 with a daily processing capacity of 200 tonnes. The new plant was put into production at the end of 2007 with a designed daily processing capacity of 200,000 tonnes. The 2008 to 2010 records indicate that the average actual processing capacity of fine ore is 50,000tpa. SRK is of the opinion that the processing plant has not operated at a stable production rate since commissioning as processing throughput has been limited by actual mining rates which were lower than its designed capacity. The production performance still cannot meet the designed performance and, therefore SRK suggests Shenzhou to investigate the obstacles preventing sustainable performance improvement through ongoing production and seek to improve the plant performance; and increase its production scale as the fixed cost tends to be lower.

The JORC Code has been adopted by The Australasian Institute of Mining and Metallurgy ('The AusIMM') and the Australian Institute of Geoscientists ('AIG') and is therefore binding on members of those organisations. It is endorsed by the Minerals Council of Australia, and the Securities Institute of Australia as a contribution to good practice. The JORC Code has also been adopted by and included in the listing rules of the Hong Kong Exchanges and Clearing Limited (HKEx). It is an 'acceptable foreign code' of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI43-101) 2011 edition.

For more information, please visit

http://www.chinaszmg.com/test/Mining_Resources.asp?class_id=61

SRK Consulting

SRK Consulting is an independent, international consulting practice that provides focused advice and solutions to clients. For mining projects, SRK offers services from exploration through feasibility, mine planning, and production to mine closure. The Group's independence is ensured by the fact that it holds no equity in any project, and with ownership primarily by staff. SRK is a leading international practice in due diligence, feasibility studies and confidential internal reviews. Formed in 1974, SRK now employs more than 1000 professionals internationally in 43 permanent offices on 6 continents.

About China Shen Zhou Mining & Resources, Inc.

China Shen Zhou Mining & Resources, Inc., through its subsidiaries, 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.

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.

SOURCE China Shen Zhou Mining & Resources, Inc.