China Shen Zhou Announces Sumochaganaobao Fluorite Mine Asset Assessment

China Shen Zhou Mining & Resources, Inc. SHZ today announced that SRK Consulting China Ltd. has completed an independent assessment of the current status and prospective future production of the Sumochaganaobao Fluorite Mine resource, and provided an independent technical report containing Mineral Resource and Ore Reserve information. 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%. 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. 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.