MISSISSAUGA, Ontario, May 27, 2005 (PRIMEZONE) -- China Resources Group Ltd. (Pink Sheets:CAEO) (the "Company" or "CRG") is pleased to provide this corporate update to shareholders regarding its recent activities and developing opportunities in China.
"CRG has made great progress in 2005 towards establishing itself as a first-class exploration partner in China," said Gerry Belanger, President & CEO of the Company. "In addition to building new relationships within the Chinese mining community and evaluating numerous potential mining properties, we have now identified two significant projects which we feel represent major opportunities for CRG."
The potential acquisitions are advanced stage exploration projects targeting gold-silver and molybdenum-copper mineralization in northeast China. Both projects host previously identified mineral resources which have been exploited by small scale local miners for a number of years. Additionally, both projects are fully permitted with all of the necessary exploration, mining, and business licenses already in place.
The acquisition of projects of this type is at the core of CRG's business strategy of investing in projects that will immediately benefit from new capital investment and the utilization of modern exploration and mining technologies and techniques not readily available in China.
CRG is currently negotiating Letters of Intent (LOI) for the acquisition of a majority interest in each of these unrelated projects with the Sino-Foreign Joint Venture companies which presently control the exploration, mining, and business licenses. Following the signing of either LOI, CRG will immediately undertake an advanced due diligence program prior to the completion of a Definitive Acquisition Agreement.
One of the projects being negotiated has considerable exposure to molybdenum. Since the emergence of China as the world's largest consumer and exporter of steel, world prices for molybdenum have risen by over 1000%. This has created outstanding opportunities to explore and develop previously identified Chinese molybdenum resources which were once considered unattractive due to low commodity prices.
Molybdenum is essential in the manufacturing of alloys such as steels, cast iron, and super alloys to provide toughness, strength, resistance to corrosion, and tolerance to high temperatures and pressures. Molybdenum and its alloys have applications in structural steel, stainless steel, forged automobile parts, aircraft and missile parts, tool steel, electronics, armor/weapon plating, and industrial lubricants.
CRG has also taken steps to further strengthen and expand its management team and Strategic Advisory Board to meet the demands of increasing exploration activities. Additional information regarding this initiative and updates concerning project acquisitions will be made available in subsequent press releases.
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.