TORONTO, Aug 23 - Arehada Mining Limited (TSX: AHD), (the "Company") announced today the initial closing of its previously announced non brokered private placement by issuing a total of $3,150,000 of units. Each unit is priced at $0.40 and consists of one common share and one-half of one common share purchase warrant of the Company (the "Warrants"). Each whole Warrant entitles the holder to purchase one additional common share at $0.75 per share, exercisable at any time prior to 5:00 p.m. (Toronto time) (the "Warrant Expiry Time") on the date that is the earlier of August 22, 2009 and the 10th business day following notice of the Company to the Warrant holders that the Company's share price closes at or above $1.50 for 20 successive trading days on the Toronto Stock Exchange at any time following December 23, 2007. On July 26, 2007 the Company announced that it would sell up to 12 million units. If investor interest remains, Arehada plans a second closing in the near future.

A finder's fee of 7% was paid to certain arms length finders (the "Finders"). In addition, the Finders received 10% finder's options to purchase units at $0.50 per unit at any time prior to the Warrant Expiry Time, with each unit consisting of one common share and one-half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at $0.75 per share at any time prior to the Warrant Expiry Time.

All securities issued are subject to a four month resale restriction period expiring December 23, 2007.

The net proceeds will be used for working capital including the purchase of 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 mines in Inner Mongolia, to produce zinc oxide and sulphuric acid.

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 operating at 1,500 tonnes per day. The Company is expanding the mine and on-site mill to reach the 3,000 tonne per day level by the fourth quarter of 2008. Among the capital additions being made to reach this level is the sinking of additional vertical and incline shafts, the opening of new work faces and an increase in milling capacity. All these measures are being financed internally from cash flow generated by operations.

About Arehada Mining

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 tonnes per annum. The recently completed first phase, with a rated capacity of 50,000 tonnes per annum, will produce zinc oxide and sulphuric acid.

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Forward Looking Statements

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.