LRL Leyshon Res

RNS Number:7206R
Leyshon Resources Limited
07 April 2008



7 April 2008

                 Power Supply for Zheng Guang Gold Zinc Project

Leyshon Resources Limited ("Leyshon") (AIM & ASX: LRL) is pleased to report that
it has entered into a contract for the installation of a 16 kilometre 35KV power
line, at a total cost of RMB 2.80 million (US$390,000), for the  Zheng Guang
gold zinc project in Heilongjiang northeast China.

The dedicated high voltage overhead transmission power line will provide 13 MW
of electrical power from State Grid, the provincial power authority, and has the
capacity to be increased to over 20 MW.

The lump sum contract has been placed with the Nenjiang Power Bureau for the
engineering design, material purchase, construction, installation and
commissioning of the line and associated facilities. The installation is
expected to commence on April 21st and is scheduled for 60 days with a penalty
of 0.1% of the total contract value per day thereafter if delayed.

Heilongjiang is an energy rich province with abundant coal and gas supplies.
State Grid has reported that it is expanding its installed electrical generating
capacity by 80% to 2.2 terawatts (million megawatts) by 2010.

Rapid progress is being made in a number of areas as designs, orders and
approvals are finalised in anticipation of the commencement of development of
the Zheng Guang project in the near future.

Managing Director Paul Atherley commented:

"The project will benefit from having a dedicated power supply provided by a
provincial authority which has access to abundant energy resources and some of
the lowest electricity prices in China."


For further information contact:


Leyshon Resources Limited
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 8000

                        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. Over
80% of employees 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 the first ever Sino
Foreign owned mine in the mineral rich province of Heilongjiang 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.

Hellman and Schofield Pty Ltd of Australia has reported a JORC compliant
resource estimate of 1.21 million ounces of gold, 3.72 million ounces of silver
and 94,000 tonnes of zinc. Full details of the resource estimate are included in
an AIM/ASX release dated 19 March 2007.

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.

Geological Information

The information in this report relating to Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled by Richard Seville, a
Director of the Company, who is a member of the Australasian Institute of Mining
and Metallurgy.

Richard Seville 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' and as a Qualified Person as defined in the AIM
Rules. Richard Seville 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

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