Readmission to AIM - Update (8519Y)

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RNS Number : 8519Y

Leyshon Resources Limited

04 January 2011

4 January 2011

China Fund IDG Capital Partners Becomes Major Shareholder

Leyshon Resources Limited (AIM/ASX: LRL) (Company) advises that it has completed its readmission to the Alternative Investment Market (AIM) of the London Stock Exchange.

As previously advised, as part of its readmission to AIM, the Company has placed 30,435,130 new ordinary fully paid ordinary shares at A$0.23 and raised approximately A$7 million before costs. The shares have been placed with a number of high profile institutional investors who are supportive of the Company's business plans. The placees include IDG-Accel China Growth Fund II L.P. and its affiliated entity (collectively, "IDG-Accel Funds"), as managed by IDG Capital Partners, which now becomes a major shareholder holding approximately 8% of the Company.

IDG Capital Partners is a China-focused investment firm with over US$2.5 billion capital under management. It is one of the earliest foreign investment funds to enter the Chinese market since 1992 and has successfully invested in the industry of consumer, services, TMT, education, healthcare, new energy and advanced manufacturing sectors, such as Ctrip, Home Inns, Baidu, Soufun, Tencent, Kingdee, Sohu, Andon, Minco Silver, Minco Gold, VANCL and Hanting and has successfully exited from over 50 investments through M&A and/or IPOs in US, Hong Kong and China.

IDG Capital Partners invests in high quality companies with long-term growth potential. It shares its in-depth understanding of the China market with investee companies. In addition to providing funding, it works closely with management and industry leaders to achieve the growth objectives of its investee companies.

As previously advised the Company is in active discussions for the acquisition of a large thermal coal project in eastern Xinjiang and in addition it is reviewing a number of thermal coal projects in Inner Mongolia. It is continuing the process of applying for exploration licences in south west Mongolia that have the potential to host coking coal.

Following the issue the Company will have cash of approximately A$54 million (including term deposit interest) and 246,525,724 ordinary fully paid shares on issue.

Managing Director Paul Atherley commented: "We have been working closely with the IDG team in Beijing for some time now and welcome them on board as a major shareholder. IDG has an impressive track record of investment in China and we look forward to their support in implementing our business plans."

For further information, contact:

Leyshon Resources Limited

Paul Atherley - Managing Director

Tel: +86 137 1800 1914

patherley@leyshonresources.com

Seymour Pierce Limited

Jonathan Wright/John Cowie (Nominated adviser)

Richard Redmayne/Leti McManus (Corporate broking)

Tel: +44 (0)207 107 8000

http://www.leyshonresources.com

Background

Leyshon was on the ground in 2003 when China opened its mining sector to foreign investment. It has been fully engaged in China since then and has its main operating office located in Beijing.

China's latest Five Year Plan emphasizes Inclusive Growth which entails the planned urbanization of a large number of Western China's rural population into second and third tier cities. This will result in significant increases in power consumption and infrastructure spending.

The Company is planning to invest in high quality coal assets in Xinjiang and South West Mongolia which will sell into the escalating demand for thermal and metallurgical coal across China over the next ten years.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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