LRL Leyshon Res

RNS Number:9289Y
Leyshon Resources Limited
25 June 2007



25 June 2007


 Cooperation Agreement with Local Government paves way for rapid development of
                              Zheng Guang Project

Leyshon Resources Limited ("Leyshon") (AIM & ASX: LRL) is pleased to announce
that it has entered into a cooperation agreement with the Municipal Government
of AiHui District for the rapid development of the Zheng Guang gold project in
Heilongjiang, northeast China.

The agreement provides for the Zheng Guang project to be ranked as a top
priority project by the AiHui government thereby facilitating its rapid
development. Under the agreement the local government will expedite approvals
for land use, access road construction, water and electricity supply.

The agreement was signed with the Mayor of the City of Heihe, the Municipal
centre of AiHui district, at the 18th China Harbin Fair for Trade and Economic
Cooperation. The high-profile ceremony was televised and attended by local
leaders of the communist party together with the most senior local government
representatives.

At the fair, officials announced an US$8 billion infrastructure investment in
the Harbin-Daqing-Qiqiha'er industrial corridor and the connection of the Russia
to China gas pipeline to Daqing, China's largest oil and gas field. Heilongjiang
is rich in energy resources and currently supplies half of China's crude oil and
has more than 22 billion tonnes of coal reserves.

Zheng Guang, which has its joint venture office at Qiqiha'er, is located 250
kilometres to the north of this major development zone and is already benefiting
from improved road, rail and air transport connections.

The expansion of the province's electricity generating capacity which is
expected to increase to more than 2.2 million megawatts by 2010 will further
enhance the province's competitive advantage for resource project development.

The average price of electricity per kilowatt hour in Heilongjiang is reported
to be half of that in China's Southern provinces.

Managing Director Paul Atherley commented:

"The scale of Heilongjiang's infrastructure development under the Central
Government's 5 year old northeast revitalization plan is remarkable by any
measure. The combination of the unexplored geological potential, low population
density and excellent infrastructure were the main reasons we chose to invest in
the Province three years ago. Since then the Province's infrastructure has
improved dramatically.

Importantly for Leyshon the government's infrastructure investments are aimed
at attracting foreign investors with the necessary expertise to revitalize
traditional industries such as mining. With the local government giving the
project its highest level of support we are looking forward to commencing
construction of China's most exciting new gold project. "

For further information contact:

Leyshon Resources

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

Pelham Public Relations
Charles Vivian
Tel: +44 (0)207 743 6672
Mob: +44 (0)7977 297 903

Candice Sgroi
Tel: +44 (0)207 743 6376
Mob: +44 (0)7894 462 114

Seymour Pierce
Jonathan Wright
Tel: +44 (0)207 107 8050

                        http://www.leyshonresources.com

Background Information

Leyshon is fully engaged in China with its main operating office in Beijing its
Chairman, Managing Director and Chief Operating Officer all based in China and
with over 80% of employees who are either native Chinese or Mandarin speaking.

The company is rapidly progressing the Zheng Guang gold zinc project to
production status and is aiming to jointly develop it as first ever Sino Foreign
owned mine in the mineral rich province of Heilongjiang's in 2008.

The project benefits from exceptional infrastructure as it is located within a
well established coal and copper mining community with rail, power, water and
mining contractor services immediately available.

In March 2007 Hellman and Schofield Pty Ltd of Australia reported a recoverable
resource estimate of 1.21 million ounces of gold, 3.72 million ounces of silver
and 94,000 tonnes of zinc of which 50% was reported in the Measured and
Indicated category.

The gold equivalent of this resource estimate is over 1.7 million ounces and the
discovery cost to date has been less than US$5 per ounce reflecting the lack of
modern exploration in a major gold belt which has produced over 20 million
ounces from mainly surface and alluvial methods.

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

END
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