TORONTO, July 26 - Arehada Mining Limited (TSX: AHD), (the "Company") announced today that it will offer to sell, on a non-brokered private placement basis, up to 12 million units, with each unit consisting of one common share and one half of one common share purchase warrant of the Company (the "Warrants"), to raise gross proceeds of up to $6.0 million. The exercise price of each full warrant is $0.75 per share, exercisable at any time during the two year term of the warrant. If the Company's share price closes at $1.50 for 20 successive days, the expiry date of the Warrants will be accelerated to the 10th business day following notice of the Company to the Warrant holders.

The offering, which remains subject to receipt by the Corporation of all necessary regulatory and third party approvals, is scheduled to close on or about August 7, 2007.

Net proceeds realized by Arehada under the Offering will be used to purchase sufficient quantities of zinc concentrate feedstock to commence production at the Company's newly completed zinc processing plant located in Inner Mongolia, China. Once in production, the zinc processing plant will process concentrate produced at Arehada's zinc-lead-silver mine as well as concentrate from other regional miners in Inner Mongolia, to produce zinc oxide and sulphuric acid.

"As a direct consequence of building the processing plant, the regional government of Inner Mongolia has mandated that all other local producers will use our facility," said Chris Harrop, Chairman of the Company. "Our plan is to begin production of zinc oxide at the plant as soon as possible and, within the next year, ramp up to the 50,000 tons per annum rated capacity. Ultimately, we also plan to add a refinery to the plant to enable production of LME quality zinc and the rare earth element, Indium."

A significant portion of the concentrate that will be used at the plant will come from Arehada's mine which began production in 2006 and is ramping up to capacity. The Company is expanding the mine and on-site mill to reach the 3,000 tons per day level during the fourth quarter of 2008. Among the improvements being made at the mine to reach this level is the sinking of an additional vertical shaft, the opening of new work faces and an increase in the workforce. All these measures are being financed internally from cash flow generated by operations.

About Dragon Capital (Arehada)

Arehada Mining Limited is engaged in the exploration, development, extraction and production of zinc, lead and silver in Dongwuzhumuqinqi, located in Inner Mongolia, China. Arehada produces zinc and lead concentrates, which are then sold to smelters in China.

Arehada is currently constructing its own zinc plant with a designed processing capacity of 100,000 tons per annum. The recently completed first phase, with a rated capacity of 50,000 tons per annum, will produce zinc oxide and sulphuric acid. 000 tons per annum, will produce zinc oxide and sulphuric acid.

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The above contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, extent of resources actually contained in mineral deposits, actual recoveries achieved in processing ore, technological change, change to regulations affecting the mining industry, risks associated with mining operation in China, environmental and safety regulations risks, and risk associated with failure to obtain required regulatory or third party consent. Forward-looking statements in this release include statements regarding future programs, review completion dates and opportunities. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

Neither the TSXV or the TSX has in any way passed upon the merits of this press release and has neither approved nor disapproved the contents of this press release.