China Shen Zhou Mining (NYSE AMEX:SHZ)

BEIJING, May 30, 2012 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources ,Inc. (NYSE Amex: SHZ) In view of the unusual market activity in the company's stock, the Exchange has contacted the company in accordance with its usual practice. The company stated that its policy is not to comment on unusual market activity.

BEIJING, May 17, 2012 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou" or the "Company") (NYSE AMEX: SHZ), a Company engaged in the exploration, development, mining and processing of fluorite, barite, zinc, copper, and other nonferrous metals in China, today announced that SRK Consulting China Ltd. ("SRK") has completed field work as part of a comprehensive process to complete a reserve assessment report of Xinyi Fluorite Company Ltd. ("Xinyi"), a subsidiary of the Company based in Jingde County, Anhui Province.

Having acquired Xinyi and its fluorite assets in January 2011, China Shen Zhou subsequently began additional drilling and collected more technical datasets. In October 2011, the Company contracted SRK to produce an independent and professional mining assessment report on Xinyi's fluorite reserve and production status. SRK recently completed field work such as supplementary drilling and sampling verification. Technical indicators generated from the sampling data are encouraging so far and suggest good potential for Xinyi's reserve.

It is expected that the SRK will provide a complete JORC compliant technical report containing mineral resource quantity and ore reserve specifications by the end of 2012. SRK completed an independent assessment of the Sumochaganaobao Fluorite Mine ("Sumo Mine") resource located in Inner Mongolia Autonomous Region in January 2011

2012 First Quarter Highlights

• Revenues were $1.5 million
• Gross margin increased to 42.8% from 35.0% in the first quarter of 2011
• Cash and equivalents were $5.1 million
• Net property, machinery and mining assets were $83.6 million.

Ms. Xiaojing Yu, the Chairwoman and CEO, commented, "We have further cemented our industry leadership in terms of fluorite extraction and processing capacity after completing our acquisitions of Dongsheng, Meilan and Qianshi. For the rest of the year, we will focus on ramping up the production and sales of fluorite powder and lumps across our strategically located mining sites. Driven by the increasing and diversifying end usages of fluorite in China and other emerging countries, the market prices for fluorite remain at a multi-year high level. We have some of the largest fluorite assets in China whose reserves and mining life have been appraised by a world-leading independent appraisal company - SRK. We believe our proven reserves, established platform and growing economies-of-scale position us well and remain confident on the future prospect of our business."

Business Outlook

For the second quarter of 2012, net revenues are expected to reach $11.1 million. During the second quarter, China Shen Zhou expects to produce: a) 18,000 metric tons of fluorite powder; b) 11,000 metric tons of fluorite lumps; c) 1,100 metric tons of zinc concentrate; and d) 180 metric tons of copper concentrate.

BEIJING, April 30, 2012 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou", or the "Company") (NYSE Amex: SHZ), a company engaged in the exploration, development, mining and processing of fluorite, barite, zinc, copper, and other nonferrous metals in China, today commented on the changing dynamics of the global zinc market.

Global demand for refined zinc grew 2.2% to 12.85 million metric tons in 2011 and is forecasted by ILZSG (International Lead and Zinc Study Group) to grow by 3.9% to 13.35 million tons in 2012. At the same time, the global production of refined zinc increased 2.7% to 13.16 million tons in 2011 and is projected to grow by 2.4% to 13.48 million tons in 2012. The surplus of refined zinc is expected to decrease by more than 50% year-over-year to 135,000 tons in 2012.

Decline in the surplus has been attributed to the depletion of a number of large mines over the next several years. Among the mines to be shut down include: the world's largest zinc mine - Teck Resources' Red Dog Mine (600,000 tons per year) in Alaska, the world's second largest zinc mine - Minmetals' Century Mine (500,000 tons per year) in Australia, Xstrata Zinc's Brunswick Mine (240,000 tons per year) in Canada, Vedanta Resources Plc's Skorpion Mine (145,000 tons per year) in Namibia and other large mines in Canada, Ireland and Peru.

Meanwhile, global zinc mine production remains below refined zinc output, with zinc mines forecast to grow by 4.8% to 13.37 million tons in 2012.

Ms. Xiaojing Yu, CEO of China Shen Zhou, commented, "Data and forecasts from industry authorities suggest that the global zinc market is trending toward a more balanced demand and supply relationship. An improving balance between the global demand and supply is potentially positive for zinc price. Xingzhen has begun processing the 20,000 tons of zinc ore which was accumulated during the winter season. We are on track to bring our zinc production back online and will continue to improve our operational efficiency."

Fourth Quarter 2011 Results

• Net revenue increased 154.3% to a record high of $12.4 million from $4.9 million in the fourth quarter of 2010
• Gross profit increased 659.8% to $5.6 million compared with $0.7 million for the same period of 2010
• Net income attributable to the Company and its subsidiaries rose to $1.1 million compared with a net loss of $2.6 million for the same period of 2010
• Net income per common share from continuing operations was $0.04 versus a net loss of $0.08 in the same period of 2010
• Cash and cash-equivalents were $5.6 million 

Ms. Xiaojing Yu, Chairperson and Chief Executive Officer, commented, "We are very pleased to report record revenues for 2011. Our revenue and profit margin increased significantly. The Chinese government's new policies limited fluorite production and encouraged the integration and consolidation within the fluorite industry. China Shen Zhou is benefitting from our growing economies-of-scale, and our acquisition of valuable fluorite mining assets and processing capabilities. We are continuing our strategy of acquiring high-quality fluorite mines, while we are also focusing our research and development efforts on the fluorine chemical industry. In addition to adding a number of valuable assets to our current operations, we plan to leverage our enhanced platform by integrating it into the high value-added fluorine chemical industry."

Outlook

"We are excited about our growth potential for the remainder of 2012 and beyond," continued Ms. Xiaojing Yu. "Our acquisition strategy has created a broad foundation for future expansion into high value industry segments. We continue to capitalize on new national policies which encourage consolidation in the fluorite industry. We are seeking opportunities to acquire nonferrous metal, precious metal, and non-metallic mineral resources and plan to further expand Xingzhen's production capacity, while we accelerate Xingzhen Mining's exploration efforts."

BEIJING, March 27, 2012 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou", or the "Company") (NYSE Amex: SHZ), a company engaged in the exploration, development, mining and processing of fluorite, barite, zinc, copper, and other nonferrous metals in China, today announced that the company completed the initial closing of the previously announced offering of Series A Convertible Preferred Stock of the Company on Monday, March 26, 2012. The initial gross proceeds of the transaction were $5.0 million.

At the initial closing, the company issued 5,000 shares of Series A Convertible Preferred Stock and warrants to purchase 1,960,785 shares of common stock of the company. The company also issued a warrant to purchase 392,157 shares of common stock of the company to the placement agent.

Ms. Xiaojing Yu, CEO of China Shen Zhou, commented, "China Shen Zhou's long-term growth strategy is largely driven by acquisition of high value assets in the non-ferrous material market segment, including fluorite mines and processing plants. This transaction will enable us to finance several recent purchases, as well as implement necessary infrastructure upgrades in order drive sales expansion in existing segments and enter new value-added market segments, like barite processing."

BEIJING, March, 21, 2012 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou", or the "Company") (NYSE Amex: SHZ), a company engaged in the exploration, development, mining and processing of fluorite, barite, zinc, copper, and other nonferrous metals in China, today announced that the Company has signed a definitive agreement with certain institutional investors for up to $10 million in gross proceeds. The Company, amongst other things, plans to use the net proceeds for developing the three mining companies in which it acquired a 60% ownership earlier this year in Guizhou. FT Global Capital, Inc. acted as the sole placement agent for the transaction.

According to the agreement, China Shen Zhou will issue shares of Series A Convertible Preferred Stock, par value $0.001 per share (the "Preferred Stock"), and warrants ("Warrants") to purchase shares of the Company's common stock, par value $0.001 per share, in two $5 million tranches. Upon the closing of the first tranche on or about Monday, March 26, 2012, the investors will purchase $5.0 million of newly issued Preferred Stock and related Warrants. Each of the initial purchasers, at their option, may purchase their allocation of Preferred Stock in the second tranche by delivery of written notice to the Company at any time prior to the first anniversary of the initial closing date. Subject to the satisfaction of certain conditions, the Company may force the initial purchasers to purchase the Preferred Stock in the second tranche at any time after the satisfaction of such conditions and prior to the four month anniversary of the initial closing date. In order for the Company to trigger the mandatory purchase requirement, the Company must obtain shareholder approval as may be required by the NYSE Amex and the Company must also satisfy certain other conditions.

The initial conversion price of the Preferred Stock is $2.04, subject to anti-dilution adjustments. The Preferred Stock will amortize in installment payments, which will be payable in common stock, subject to certain equity conditions, or, at the Company's discretion, in cash. The dividend rate on the Preferred Stock is 5% per annum, payable quarterly in common stock, subject to certain equity conditions, or, at the Company's discretion, in cash.

At the closing of the initial tranche, the investors will receive warrants to purchase, in the aggregate, approximately 1,960,785 shares of common stock, which are exercisable for 42 months beginning on the closing date (including warrants to purchase approximately 980,393 shares of common stock, which were paid as additional consideration for the commitment of the initial purchasers to fund the second tranche). No additional warrants will be issued upon the consummation of the second tranche. The warrants have an initial exercise price of $2.04, and are subject to anti-dilution adjustments.

The placement agent for the offering will also receive a to purchase approximately 392,157 shares of common stock at an initial exercise price of $2.45 or 120% of the initial exercise price of the investor warrants.

Ms. Xiaojing Yu, CEO of China Shen Zhou, commented,"China Shen Zhou is one of the few Chinese companies to complete an equity financing transaction over the past two years, demonstrating the equity market's confidence in the Company's operations and strategy. This additional financing transaction further acknowledges the equity market's belief in the Company's future."

BEIJING, February 23, 2012 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou", or the "Company") (NYSE Amex: SHZ), a company engaged in the exploration, development, mining and processing of fluorite, barite, zinc, copper, and other nonferrous metals in China, today announced that its subsidiary, Xinyi Fluorite Company, Ltd. ("Xinyi"), based in Jingde County, Anhui Province, has successfully implemented the security systems and production safety standards required by the State Council.

In January of 2011, China Shen Zhou acquired, through its subsidiary Xingzhen Mining Ltd., 55% ownership in Xinyi Fluorite Company. Since the acquisition, Xinyi has undergone implementation of the six security systems and production safety standards required by the State Council. The security systems included special monitoring and controls, an underground personnel positioning system, an emergency refuge system, an emergency compressed air supply system, an emergency water supply system, and underground communications.

These six security systems and accompanying production safety standards have now passed inspection. The Xinyi processing floatation plant is on track to resume production on March 1, 2012, following the Spring Festival holiday break.

Ms. Xiaojing Yu, Chief Executive Officer of China Shen Zhou, commented, "In addition to utilizing the mandated security systems and safety production standards, China Shen Zhou is dedicated to enhancing overall safety and supervision of the Xinyi production site. These measures will include additional training for underground personnel to improve their ability to escape from potential accidents and protect themselves from other injury."

The Company is addressing its liquidity needs and has taken positive steps by accomplishing the following:

• It obtained approximately $20 million from issuance of common shares in January 2011.
  
• Xiangzhen Mining, Xingzhen Mining and Xinyi Fluorite were all under normal operation at the end of March 2011, and are expected to remain in normal operation for the foreseeable future.
  
• During 2010 and the nine months ended September 30, 2011, the average sale price of fluorite powder steadily increased. The average sale price of fluorite powder for the nine months ended September 30, 2011 was approximately $339 per ton, which increased by approximately 161% from approximately $130 per ton for the same period of 2010.

In addition, if needed management plans to issue additional equity securities and or debt to meets its obligations on a timely basis.

Third Quarter 2011 Results

Second Quarter Financial Highlights

• Revenues increased 318% over the previous year's period to a quarterly record of $9.1 million;
• Gross margin jumped to 47.6% compared with 20.8% in the second quarter last year;
• Net income rose to $128,000 compared with net loss of $504,000 for the same period of 2010;
• Net income per common share from continuing operations was $0.01 compared with a net loss of $0.02 a year ago

Ms. Xiaojing Yu, Chairperson and Chief Executive Officer of China Shen Zhou commented, "We are pleased to deliver continued improvements in net sales and income for the second quarter. This growth has been driven by increasing global demand for fluorite resources and the Chinese government's policies restricting production and exploration of such resources. Our strategy is to continue to

BEIJING, May 16, 2011 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. today announced financial results for the first quarter 2011 ended March 31, 2011.

Ms. Xiaojing Yu, the Chairwoman and CEO, commented, "We have made great progress in our operations and gained financial strength through our equity offering. Our resources and assets have risen through our 55% ownership in the Xinyi Fluorite Company. We look forward to reaping the benefits of rising fluorite prices and our larger fluorite volumes. The 2011 year will be highlighted by marked improvement in sales and earnings."

• For the first quarter of 2011, net sales were $1.9 million, an approximate $975,000 or 106% increase from approximately $0.9 million in the same quarter of 2010
• Net loss attributable to stockholders for the first quarter of 2011 was $1.6 million, or $0.06 per diluted and basic share, compared with net loss attributable to stockholders of $0.8 million, or $0.03 per diluted and basic shares, in the 2010 first quarter.

On April 12, 2011, China Shen Zhou Mining & Resources, Inc. (the “Company”), through its subsidiary Inner Mongolia Wulatehouqi Qianzhen Ore Processing Co., Ltd. (“Qianzhen Mining”), entered into an equity transfer agreement (the “Agreement”) to sell its 60% equity interest (the “Equity”) in Wulatehouqi Qingshan Nonferrous Metal Development Co., Ltd. (“Qingshan Metal”), a company based in Wulatehouqi, Inner Mongolia, China to a Chinese citizen Mr. Mao Huang (the “Investor”).

Qingshan Metal owns mining rights to and related assets of Qingxing No.2 Mine (“Qingxing Copper”). Qingxing Copper’s mining area is 0.6495 square kilometers.  The Investor is a related party to the Company. As of the date of the Agreement, the Investor holds 5% of the shares in Xinjiang Buerjin County Xingzhen Mining Company (“Xingzhen Mining”), a subsidiary of the Company. The Company holds 90% of the equity interests in Xingzhen Mining.
 
Pursuant to the Agreement, the Qianzhen Mining will sell all of its Equity in Qingshan Metal to the Investor for total consideration in the amount of RMB 8.5 million (approximately US$ 1.3 million) (the “Transfer Price”). The payment of the Transfer Price will offset the debt owed by Qianzhen Mining to the Investor. The amount to be setoff will be determined by both parties upon the signing of a debt settlement agreement within five business days of the effective date of the Agreement. After the transfer, Qianzhen Mining will no longer hold any equity interests in Qingshan Metal.

Fourth Quarter Results:

• For the fourth quarter of 2010, net sales were $4.9 million, a $3.8 million increase from $1.1 million in the same quarter of 2009.
• Gross profit was $741,000 for the fourth quarter of 2010, a difference of $951,000 from a gross loss of $210,000 in the 2009 fourth quarter.
• Net loss attributable to stockholders for the fourth quarter of 2010 was $2.5 million compared with net profit attributable to stockholders of $9.2 million in the 2009 fourth quarter as a result of an almost $14 million gain on the extinguishment of convertible debt.
• EPS for the quarter was a loss of ($0.09) vs. a $0.41 gain the year before.

For the 2011 year, net revenues are expected to rise to an estimated $38.0 million with an estimated $11.0 million in net income.

Ms. Xiaojing Yu, the Chairwoman and CEO, commented, "The 2010 year has been a transition as we have brought new processing capacity on line, better defined our assets and the Chinese government's new policies are forcing a realignment of the fluorite industry.  As we possess the largest fluorite mine in Northern China, we are well positioned to benefit from the new regulations and policies. We experienced strong sales growth in the second half of 2010 and we believe 2011 will be an even better year."

BEIJING, March 14, 2011 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. today announced in further response to a recent report questioning its public disclosures, China Shen Zhou's Board of Directors has formed a special committee and retained the law firm of McKenna Long & Aldridge as special counsel in the United States.

McKenna Long & Aldridge will advise the Company with respect to its concerns and rights arising out of the publication of the report, and to assist in developing a program of responses to the publication of and statements in the report.

The Company further stated that, except for the typographical error regarding one of the geographic coordinates of the Qingxing mine from a previous 10-K to the 2009 10-K (as is explained in its shareholder letter of March 10), the periodic reports the Company filed with the SEC are accurate.

The Company confirmed that it is completing its 10-K for the year ended December 31, 2010 as planned and the 10-K will be filed on time. The Company also repeated that it prepared a detailed response to the report in a letter to stockholders datedMarch 10, 2011, which is available on the Company's website at: http://www.chinaszmg.com/SHZ_shareholder_letter.pdf.

Ms. Xiaojing Yu, Chief Executive Officer of China Shen Zhou, commented, "China Shen Zhou is determined to create and protect shareholder value. We have tasked the special committee and special counsel to explore all options available to the Company in response to this report. We believe the Company is in the best position to take advantage of industry changes occurring from new government fluorite mining and processing policies."

We may offer common stock, preferred stock, warrants and/or rights, either individually or in units, from time to time in one or more offerings in amounts, at prices and on terms to be determined in light of market conditions at the time of sale.

Under this shelf registration process, from time to time, we may sell any combination of the securities described in this prospectus in one or more offerings, up to a total dollar amount of $50,000,000.

For the 2010 year

net revenues are expected to grow organically to approximately $14.5 million compared with $4.2 million in 2009.  

For 2011, China Shen Zhou expects production to reach approximately 60,000 metric tons of fluorite powder and approximately 40,000 metric tons of fluorite lumps. Nonferrous metal production should reach approximately 15,000 metric tons of zinc concentrate (equal to 7,000 metric tons of zinc metal) and nearly 1,500 metric tons of copper concentrate (equal to 280 metric tons of copper metal) in the 2011 year. In the first nine-months of 2010, the Company sold 8,800 metric tons of fluorite powder, 20,356 metric tons of fluorite lumps, 5,400 metric tons of zinc concentrate and 700 metric tons of copper concentrate.

For the year to end December 31, 2011, net revenues are expected to approximate $38.0 million, a 164% increase compared with the 2010 estimated net revenues of $14.5 million. All this anticipated growth is organic from the current product portfolio.  Net income for the 2011 year is estimated to reach approximately $11.0 million.

Management set the operating plan for 2011 with a specific strategy to increase nonferrous exploration to acquire future revenue producing assets in this mineral-rich area. The Xingzhen Mining's exploration area has been designated as a key exploration area in western China's development strategy.  The Company has continuously increased its investment in nonferrous metals exploration over the past few years and made significant progress in 2010.  Management expects to accelerate these exploration activities going forward.

Another goal for 2011 is to enhance disclosure of the Company's assets. The Company has engaged SRK Consulting, a leading global assessment firm for the international mining industry to assess the Company's assets. It has already begun appraising the fluorite reserves. China Shen Zhou believes a full resource assessment of its explorations and assets can be completed and reported in compliance with the disclosure standards of U.S.- listed companies no later than the second quarter of 2011.

Ms. Yu Xiaojing, the CEO of China Shen Zhou, commented, "The outlook for 2011 is very promising as both nonferrous metals and fluorite are exhibiting strong organic growth. The demand for our nonferrous metals is growing and we are actively exploring for and pursuing new assets to help us become a much larger and more profitable company. Fluorite prices are rising partially due to changing government regulations resulting in structural changes in the fluorite industry."

Third Quarter 2010 Highlights:

• Net revenues increased by 110% in the third quarter of 2010 as compared to the same period in 2009 to US $3.62 million from US $1.72 million.

• Gross profit increased by approximately 600% in the third quarter of 2010 as compared to the same period in 2009 to US$1.74 million from US$0.25 million.

• Gross margin was 48% as compared to 14% in the same period of the prior fiscal year.

• Net income attributable to the Company and subsidiaries increased in the third quarter of 2010 to US$0.52 million as compared to a net loss of US$2.15 million in the same period in 2009.

• Basic and diluted net income (loss) per share from continuing operations was US$0.02 in the third quarter of 2010 and minus US$0.08 in the third quarter of 2009.

"In the third quarter, we achieved a significant change in operations. Our major processing plants have begun operating at full scale in the third quarter of this year. We believe that this is a new beginning for our business since September 2008 after the crisis. Along with the increase in the price of our final products, this situation brings a positive change to our financial results. We expect that such full-scale operations in our plants will continue to be carried out in 2011." said Ms. Xiaojing Yu, the Chairwoman and CEO of the Company.