Arehada Mining Limited completes second tranche of financing

TORONTO, Aug 29 - Arehada Mining Limited (TSX: AHD), (the "Company") announces the completion yesterday of the second and final tranche of its previously announced non-brokered private placement by issuing a total of 2,506,250 units raising a total of $1,002,500. 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 28, 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 29, 2007. In both tranches of the financing, a total of 10,381,249 units were issued raising aggregate gross proceeds of $4,152,500.

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 in the second tranche are subject to a four month resale restriction period expiring December 29, 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.

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.