Arehada Mining Limited completes second tranche of financing

    TORONTO, Aug. 29 /CNW/ - 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 Inner Mongolia, China.
Arehada produces zinc and lead concentrates, which are then sold to smelters
in China.

    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.

For further information:

For further information: Christopher Harrop, Chairman, Arehada Mining
Limited, Tel.: (416) 362-5466, Email:; Martti Kangas,
Investor Relations, The Equicom Group, Tel: (416) 815-0700 x 243, Email:

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