China Resources CEO Provides Corporate Update

Surging Gold Prices Present New Opportunities for China Projects


MISSISSAUGA, Ontario, Dec. 6, 2005 (PRIMEZONE) -- China Resources Group Ltd. (Pink Sheets:CAEO) (the "Company" or "CRG") is pleased to provide this corporate update to shareholders regarding its current activities and developing opportunities in China.

"The recent surge in the price of gold to over $500 per ounce has dramatically improved the economic prospects of exploration and mining opportunities for CRG in China," said Gerry Belanger, President & CEO. "Chinese gold deposits that were once considered marginally economic or 'out-of-the-money' are now considered very attractive and CRG has taken steps to fully exploit these new gold price-driven opportunities."

CRG and Hong Kong-based Chandwell Investments continue to conduct due diligence and negotiate letters-of-intent for the acquisition of several high-potential mineral exploration and development projects in China. Projects currently being considered for acquisition include a formerly operating gold mine in Gansu Province with a multi-million ounce gold reserve estimate. The economics of this mine have improved significantly with higher gold prices and would also benefit from the utilization of modern exploration and mining technologies and techniques not previously employed at the mine. The acquisition of this mine and similar opportunities are now a top priority for CRG.

In September, 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. CRG is progressing at Qian Tai Zi and has engaged an independent and internationally renowned mining consulting company to evaluate the Qian Tai Zi Gold Deposit and provide their overall impressions of the project and the previous exploration conducted by our Chinese partners. This includes an evaluation of the Chinese calculated reserve estimates, the potential for expansion of the known gold reserve estimate, the potential for economic mining, and their recommendations for further exploration at the Qian Tai Zi Gold Deposit. This evaluation will take into account a full geological and exploration study of the Qian Tai Zi Gold Deposit completed by our Chinese partners and recently translated into English for the first time.

"Most analysts have been predicting significantly higher gold prices and many have issued near term price targets of $1000 or more per ounce," said Mr. Belanger. "The recent dramatic price increase to over $500 per ounce could be the tip of the iceberg. We look forward to working with our partners to explore and develop exciting Chinese projects in this very bullish environment."

Additional information regarding the Qian Tai Gold Deposit can be found at our company website and further updates concerning new 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.



            

Tags


Contact Data