Arehada Prepares For Mining Operation

Arehada Mining Limited announced on Friday that its wholly owned Chinese operating subsidiary, Arehada Mining Corporation ("Arehada China"), has obtained further extension for its bank loans and has re-assembled its management team on site to prepare for resumption of mining operations.

Arehada China has two short term bank loans with the Agricultural Bank of China (the "Agricultural Bank") in the amount of RMB 16,000,000 and RMB 14,000,000 due on February 21, 2009 and February 26, 2009 respectively, as well as a RMB 20,000,000 principal repayment due on February 20, 2009 on the five-year term loan with the Agricultural Bank. After discussions with Arehada China, the Agricultural Bank agreed to extend all three loans. The Agricultural Bank has agreed that when Arehada China re-starts its mining operation and generates cash flow from operation (after covering its operational needs), Arehada China would start to repay the interest on the loans, and when Arehada China has generated surplus cash flow after covering its operational and day-to-day business needs, the Company would start to repay the principal.

After a few months of care and maintenance, Arehada China is now gearing up to re-start its mining operations, thanks to the recent increase in zinc and lead prices. Managers, engineers and financial staff have been re-assembled at the mine site to prepare for the resumption of the mining operation. Arehada plans to further reduce costs and increase head grade of lead and zinc by targeting higher grade ore bodies and by adopting more efficient measures and technology. Arehada expects to resume the mining operation on or about mid-March, 2009. Arehada China currently does not have immediate plan to re-start the zinc processing plant.

"We are very pleased to receive the loan extension from the Agricultural Bank and we are excited that we will start our mining operations again," commented Mr. Steve Fan Wang, Chairman and CEO of Arehada. "The low metal prices in the past several months have been very difficult for mining companies like Arehada. We appreciate the co-operation and understanding shown by our bankers, shareholders and other stakeholders during this period. Now with the metal market condition improving, and with the new measures planned for our operation, we believe that the company will be back on track."