Xinyi Received Favorable Local Tax Rates

China Shen Zhou Mining & Resources SHZ today announced that the Jingde county government has approved the application of the Xinyi Fluorite Company, a subsidiary of China Shen Zhou based in Jingde County, Anhui Province, to obtain favorable tax rates for the next five years starting from June 22, 2011. In China, the local county will normally retain 25% of both the corporate income tax and Value Added Tax. However, there are some favorable tax rate policies to promote new investment in assets in the county. The Jingde county government has verified and confirmed that Xinyi's total assets after restructuring exceeds RMB 8 million (approximately USD 1.2 million ). Therefore, the county government has approved that the county's retained corporate income tax will be returned fully to Xinyi during the first two years of the five-year period and it will return 50% during the remaining three years. In addition, 50% of the county's retained VAT will be returned during the first two years.