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  Arehada Provides Operations Update

TORONTO, June 10 , 2009 - Arehada Mining Limited (TSX: AHD) today provided the following update for its wholly owned Chinese operating subsidiary, Arehada Mining Corporation.

The resumption of mining commenced in April 2009 and processing began on May 10, 2009. Every phase of the operation in the mine since resumption has been proceeding smoothly and safely. The Company has seen improvement in head grades and recovery levels. The average combined lead - zinc head grade has reached 3.33% in May, 2009. In addition, the combined recovery rates of the lead and zinc concentrate has improved to 88.66%, an increase of 2% compared to the recovery rate of 86.61% achieved in 2008. These two key production performance indicators have reached the best levels since 2005 when the Company commenced operations. The primary reason that the head grade has improved is the adoption of the Short-hole shrinkage method instead of Sublevel Open Stope Mining (long-hole mining) method which was used in the mine from 2005 to 2008.

The Company is benefiting from the recent increase in base metal prices, which the Company believes is the result of the increase in the demand for base metals including lead and zinc likely due to economy recovery in China. Given the volatility in metal prices, the Company's near-term primary objectives are to maximize cash flow and to minimize costs. The Company believes it has effectively implemented these objectives in May and will continue to implement conducted over the coming months. If lead and zinc prices significantly increase in the future, the Company will consider adjusting these near-term objectives.

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 has completed construction of a zinc processing plant, to produce zinc calcine and sulphuric acid.

For further information:

Betty Si-Ge Wang
Assistant Secretary
Arehada Mining Limited
Tel: 86-10-6265-7817
Email: arehada@yahoo.com.ca

   
Graham Warren
Chief Financial Officer
Arehada Mining Limited
Tel: (416) 362-5466
Email: gwarren@arehadamining.com
 

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.

 
     
 
 
 
 
(c) 2007 Arehada Mining Limited
 
 
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