RNS Number:2623L
Leyshon Resources Limited
31 October 2006



                        SEPTEMBER 2006 QUARTERLY REPORT

        Rapidly Advancing Zheng Guang Gold Project To Development Status

Leyshon Resources Limited (ASX/AIM: LRL) is pleased to report that further
progress has been made during the quarter in advancing the Zheng Guang project
as the first ever Sino Foreign owned gold mine in the mineral rich province of
Heilongjiang, northeast China.

Leyshon is pioneering the exploration and development of a major unexplored
mesothermal gold belt bordering Russia's Amur Province, which has produced over
20 million ounces of gold mainly from alluvial sources.

This year's drill programme is Heilongjiang's largest in recent years and
comprises over 10,000 metres of diamond drilling and 20,000 metres of reverse
circulation drilling and is following up the highly successful 21,000 metres of
drilling undertaken in 2004 and 2005.

The diamond drill programme is expected to be completed late October 2006 and to
date assay results from 19 of the 50 holes drilled have been released. The
results so far have reported extensions of the Main Ore Zone to the North West
and to the South and a thickening of the mineralisation as it extends down dip.

Together with these broad zones of mineralisation a number of high grade gold
and zinc intersections and have been reported including the intersection of a
bonanza grade epithermal gold vein in hole ZGD113 located 200 metres to the
north west of the Main Ore Zone grading 600.75 g/t gold, 445 g/t silver and
5.34% zinc which equates to approximately 19 ounces gold, 14 ounces silver and
over 5% zinc per tonne.

A 20,000 metre reverse circulation programme is underway testing the
economically significant shallow oxide resources which occur in the top 30
metres over much of the Main Ore Zone and elsewhere on the licence. The
programme is expected to be completed during November.

This year's programmes are expected to significantly increase the initial JORC
compliant inferred resource estimate of 930,000 ounces gold, 64,000 tonnes zinc
and 2.6 million ounces silver (equivalent to 1.2 million ounces of gold based on
1 g/t gold = 1% zinc).

Mine Development Studies by Australian and Chinese consultants are well
underway. Hydrological, geotechnical and environmental drilling and field work
programmes have also been commissioned and are underway.
Leyshon's partner, the Qiqiha'er Brigade of the Heilongjiang Bureau of Geology
and Mineral Resources, one of the largest organizations of its kind in China, is
providing a range of services to the joint venture from its complement of 4,000
technical staff, drill rigs, laboratory and other technical facilities. This
valuable support is enabling the project to rapidly move ahead on an extremely
cost effective basis.

Leyshon created the province's first Sino Foreign Mining Joint Venture in
January 2004 and has earned a 70% interest in the project which was a
greenfields discovery in 2000. In April, a 20 year agreement was entered into
with Qiqiha'er Brigade which sets out the terms under which the joint venture
company will explore, finance and develop the project.

Leyshon is continuing to evaluate gold project acquisition opportunities
elsewhere in China and its neighbouring countries. It has its main operating
office in Beijing and remains one of the very few foreign mining companies with
its Chairman, Managing Director and Chief Operating Officer all based in China .


For further information contact:

Paul Atherley - Managing Director 
Tel: +86 137 1800 1914
Mob: +61 417 475 038 
www.leyshonresources.com

Leesa Peters/Jos Simson - Conduit PR
Tel: +44 (0) 20 7429 6600
Mob: +44 (0) 781 215 9885


Geological Information

The information in this report relating to Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled by Mr Malcolm Wilson,
a full time employee of the Company, who is a member of the Australasian
Institute of Mining and Metallurgy.

Mr Wilson has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr Wilson consents to the inclusion in the report
of the matters based on his information in the form and context in which it
appears.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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