Baiyinhanshan is a company controlled by Messrs. Steve Fan Wang and Tom Zhen Wang, the principal shareholders, directors and officers of Arehada. The loan bears interest at 7% per annum with the interest accruing on and from March 15, 2007, and was guaranteed by Arehada Mining (Barbados) Corporation ("Arehada Barbados"), a company also controlled by Messrs. Steve Fan Wang and Tom Zhen Wang. As security for the guarantee, Arehada Barbados pledged a total of 80,000,000 Arehada common shares held by Arehada Barbados in favour of Arehada China.

The Baiyinhanshan loan was due on December 31, 2008. However, due to low metal prices, Baiyinhanshan has been in care and maintenance, similar to Arehada China and many other mining operators in the region. Under the current difficult situations, the board of Arehada have agreed to extend the due date for the Baiyinhanshan loan by three months.

An aggregate amount of RMB 13,250,000 ($2,035,200) had been repaid in the first three quarters of 2008 by Baiyinhanshan delivering to Arehada China zinc concentrates as part of ordinary course transactions. The concentrates were priced at market value based on the average price at the Shanghai metal exchange. As at December 31, 2008, the principal amount due from Baiyinhanshan under the loan was RMB 69,599,000 ($10,690,406).

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.

Contacts:Arehada Mining LimitedBetty Si-Ge WangAssistant Secretary86-10-6265-7817Email: arehada@yahoo.com.caArehada Mining LimitedGraham WarrenChief Financial Officer(416) 350-5133Email: gwarren@arehadamining.com