Arehada Mining Limited Announces 2007 Results

TORONTO, Apr 2 - Arehada Mining Limited (TSX: AHD), , (the "Company") today announced financial results and operational highlights for the 12 months and year ended December 31, 2007.

Total revenue for the 2007 fiscal year was $19,884,010 from the mining of 409,000 tonnes of ore resulting in earnings after tax of $4,553,534 or $0.034 per share.

Those earnings include non cash charges of $1,489,080 for stock based compensation and excluding those charges the earnings would have been $6,042,614 or $0.046 per share.

Cash flow for the twelve month period was $7,436,224 or $0.055 per share.

In 2007, Arehada conducting mining operations at a rate of approximately 1,340 tonnes per day and operated 305 days during the period. The operating days are in line with expectations but the daily rate was below our forecast 1,500 tonnes per day primarily due to a major change in the mining plan implemented during the period.

Head grades of approximately 1.2% zinc and 1.0% lead resulted in an average combined recovery rate of 83%. Silver head grades of 41 grammes per tonne met a 76% recovery factor from the lead concentrate.

These grades are substantially below the overall head grades for the resource cited in the RPA report but partially reflect the mining of above normal amounts of waste rock and lower grade material at the commencement of mining operations.

We expect a substantial improvement in these grades in 2008 as well as an increase in tonnage mined.

Operating costs have increased to US$18.59 per tonne largely reflecting an anticipated increase in labour rates but is in line with the RPA Report forecast of $18.65 per tonne. It is expected that these costs will level out from here as the mining operations progress.

Subsequent to receipt of our 43-101 report we have conducted an extensive development drilling programme utilizing six drills to outline further mineral resources. We are expecting to update our 43-101 report by the end of the second quarter.

The mineral resources are being developed with a view to support an expansion of our underground mining capacity to 3,000 tonnes per with a concurrent doubling of capacity of our milling capacity.

The Company is financing this development drilling from internal cash flow and can fund a gradual expansion of our underground capacity in the same manner.

As previously reported, construction of the first phase of our 50,000 tonnes per annum plant to produce zinc oxide and sulphuric acid from concentrate has now been completed. We had expected this to be operational by the end of 2007 but have endured innumerable delays in receiving bank funding for working capital due to the tightening credit situation in China.

We remain cautiously optimistic that we will be able to commence operations in the near future.

Overall, we are pleased with the first full year of operation for the mine and would like to thank shareholders for their patience during this time.

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 constructed a zinc plant with a designed processing capacity of 50,000 tonnes per annum. The zinc plant of 50,000 tonnes per annum has been completed and startup is scheduled for the second quarter of 2008 pending receipt of working capital funding from a local bank.

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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.