LRL Leyshon Res

RNS Number:0805O
Leyshon Resources Limited
18 December 2006



                           LEYSHON RESOURCES LIMITED

  Leyshon raises #8.3 million from US and UK institutions to rapidly progress
                          Zheng Guang to construction

Leyshon Resources Limited ("Leyshon") (AIM & ASX: LRL) today announces that it
has raised #8.3 million (US$16.25 million) enabling it to rapidly progress the
Zheng Guang gold zinc project to construction status and to continue to expand
the 1.2 million ounce gold equivalent resource through a major exploration
programme.

The placement was made to institutional clients of Mirabaud Securites Limited
and Seymour Pierce Limited and include a number of the largest funds in the UK
and US resources sector.

It is planned to invest US$5.5 million into pre production development
activities which are expected to commence early in 2007, US$4.8 million towards
a major generative exploration programme commencing in April 2007 and final
joint venture payments with the balance being applied for working capital
purposes.

The placement was made at 22 pence per share before issue costs and will occur
in two tranches, 23,786,984 shares this week pursuant to ASX Listing Rule 7.1
(15% placement limit) and the remaining 13,944,016 shares immediately following
shareholder approval at a shareholder meeting to be held on 17 January 2007.

In addition, as announced on 16 November 2006, 10,000,000 new shares have been
issued following the conversion of preference shares of which 5,000,000 are held
by Managing Director Paul Atherley and 500,000 by Finance Director Stacey
Apostolou.

Following the placing and conversion of the preference shares, and assuming all
37,731,000 shares the subject of the placing have been issued, Mr Atherley is
interested in 15,000,000 ordinary shares, representing 7.62% of the enlarged
issued share capital and Ms Apostolou is interested in 800,000 ordinary shares,
representing 0.41% of the enlarged issued share capital.

The total number of new ordinary shares issued following the placement and the
conversion of the preference shares is 47,731,000. Application has been made for
these shares to be admitted to trading on AIM with the first tranche of the
placing shares together with the converted preference shares expected to trade
from 19 December 2006, and for the second tranche of placing shares from 19
January 2007.

Managing Director Paul Atherley commenting today said "We are delighted to
welcome these institutions to the register and are pleased to note the number of
existing UK institutional shareholders which have increased their holdings
through the placement. The funds will enable us to rapidly progress Zheng Guang,
one of China's newest and most exiting gold projects to construction status
whilst at the same time continuing to aggressively expand the resource
inventory."

                        For further information contact:

                       Paul Atherley - Managing Director

                             Tel: +86 137 1800 1914
                              Mob: +61 417 475 038

                        http://www.leyshonresources.com

Background Information

Leyshon is rapidly advancing the Zheng Guang gold zinc project to production
status and is aiming to jointly develop it as the first ever Sino Foreign owned
mine in the mineral rich province of Heilongjiang.

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.

This year's drill programme is the largest to be undertaken in Heilongjiang in
recent years and comprises over 13,000 metres of diamond drilling and 16,000
metres of reverse circulation drilling and is following up the highly successful
21,000 metres of drilling undertaken in 2004 and 2005.

This year's programme is expected to increase the initial JORC compliant
inferred resource estimate reported in May of this year 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). The estimate has been made by
resource specialists Hellman and Schofield of Australia and is based on the
results from the 2004 and 2005 programmes.

Leyshon has completed its expenditure requirements to earn its 70% interest and
has entered into a 20 year agreement with Qiqiha'er Brigade for the financing,
development and mining of the project.

Leyshon has its main operating office in Beijing and is one of the very few
foreign mining companies with its Chairman, Managing Director and Chief
Operating Officer all based in China.



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

END
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