RNS Number : 3440W
  Leyshon Resources Limited
  10 June 2008
   

    10 June 2008 

    ROAD CONSTRUCTION COMMENCES AT ZHENG GUANG

    Leyshon Resources Limited ("Leyshon") (AIM & ASX: LRL) is pleased to advise that construction of the main access road at the Zheng Guang
gold project in Heilongjiang, northeast China has commenced. 

    The 8.6 kilometre road will be the main access route for the project and has been located to minimise disturbance to local villagers. It
will connect the project with the residential town of Heibaoshan and will include a fibre optic cable for broadband and other
telecommunication links.

    The road and associated services will cost RMB5.05 million (US$728,000). The contract for construction of the road has been let to the
Qiqiha'er QQHR Mineral Exploration and Development Institute, a division of the Company's joint venture partner. The construction is
expected to be completed within 90 days.

    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 297903

    James MacFarlane
    Tel: +44 (0)207 743 6672
    Mob: +44 (0)7841 672831

    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. 

    Changchun Design Institute has recently reported that the capital cost estimate for the 1.5 million tonne per annum combined carbon in
leach and flotation circuit process plant is RMB323 million RMB (US$46 million). Orders have been placed for two 4.6 metre diameter ball
mills at a cost of RMB15.2 million (USD 2.1 million) and a RMB12.1 million (USD 1.7 million) order has also been placed for the supply of a
700 tonne per hour Nordberg crushing circuit. 

    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 
 
MSCEAXKEFANPEEE

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