MISSISSAUGA, Ontario, Jan. 17, 2006 (PRIMEZONE) -- China Resources Group Ltd. (Pink Sheets:CAEO) (the "Company" or "CRG") is pleased to provide this report to shareholders regarding recent developments and acquisition opportunities in China.
"The market prices for gold and other natural resources continue to surge. This has brought about an unprecedented demand for shares of gold and other natural resource focused companies," said Gerry Belanger, President and CEO. "These bullish market conditions are providing CRG and its shareholders with more incentives and opportunities for success than ever before."
As a result of the increased price of gold, the economics of mining have been changed dramatically, and as such, CRG and Hong Kong based Chandwell Investments have recently begun to evaluate and negotiate for the acquisition of producing gold mines in China.
A Letter-of-Intent for the acquisition of a gold mine in Gansu Province with a multi-million ounce gold reserve estimate has been drafted and presented to the current private Hong Kong based mine owners for execution. The economics of this formerly producing mine have improved significantly with higher gold prices and could be improved further through the application of modern exploration and mining techniques not employed at the mine in the past.
Previously, CRG announced that it had entered into a Definitive Agreement for the further exploration and development of the Qian Tai Zi Gold Deposit, an advanced stage gold exploration project in Anhui Province. After a detailed evaluation of the historic exploration and geological data prepared by the Company's Chinese partner and information collected by CRG during the 2005 exploration season, CRG has submitted notification that due to technical complications associated with the mineral deposit it has elected to cease all expenditures associated with this specific project. CRG intends to continue working with The Mineral Resources Development Company of Wuhe County, the highest local level authority for mineral resource development, to explore an develop other mineral deposits previously identified by CRG and Chinese exploration in the region.
Further updates concerning CRG and new project acquisitions will be made through subsequent press releases made by the Company.
About China Resources Group Ltd.
China Resources Group is an emerging resource exploration company focused on the acquisition and development of high-potential exploration properties in China. China Resources Group shares are traded over-the-counter on the Pink Sheets.
To learn more about China Resources Group, visit www.chinaresgrp.com.
Disclaimer: Portions of this press release include "forward-looking statements," which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this press release.