ELRA Elray Resources Inc (PK)

Elray Resources, Inc. (OTCBB: ELRA), a global exploration and production mining company with a portfolio of valuable properties, is pleased to report that the recently acquired Picacho property in south-eastern Ecuador shows potential for the discovery of precious metals due to a number of gold bearing veins.

The region is in a prolific 150 sq km region known to contain at least 15 important gold bearing veins, many of which extend for over a kilometre in length.

In a region that has produced over 4.5 million ounces since records began in 1905, independent Geologists have estimated that the depth of some of the veins may be up to 1500m. The Company believes that a potential for significant amounts of gold may be possible as the veins have only been mined to a depth of 200m.

The Company reports that official records reveal that the major regional mining company, SADCO, extracted over 4.5 million ounces of gold from the region between 1905 and 1950, marking the area as prolific, with an average grade of 14.5 grams/ton of gold. Active projects in the area include Dynasty's Zaruma, Dynasty and Jerusalem projects, which between the three projects have over 2 million measured and indicated ounces of gold with over 3 million ounces inferred.

Gold prices, which have taken a breather, could get help in coming months from Chinese demand for bullion, noted analyst Michael Widmer. Bank of America/Merrill Lynch expects China "to provide continued support to gold prices going forward," and maintained a medium-term gold price target of $1,500 an ounce for gold.

About Elray Resources, Inc.

Elray Resources, Inc. is a junior exploration and development Corporation which has successfully accumulated a portfolio of highly prospective, heavily mineralized mining tenements in South East Asia and South America. Elray Resources, Inc.'s, primary objectives are to source projects, conduct geological assessments and seek Joint Venture partners to develop the properties.

Please visit www.ElrayMining.com for more information.

This press release may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the company's expectations, objectives, anticipations, plans, hopes, beliefs, intentions, or strategies regarding the future. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. These forward-looking statements involve risks and uncertainties that include, among others, risks associated with gold & precious mineral exploration risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, commercial agreements, acquisitions and strategic transactions, government regulation and taxation. More information about factors that potentially could affect the Company's financial results is included in its filings with the Securities and Exchange Commission.

Investor Relations: Barry Lucas 702.940.9714 Email Contact