REVENUE decreases from zinc and fluorite processing operations resulted in China Shen Zhou Mining and Resources recording a decrease of 50.27% in overall revenue during 2008.

Net revenues for 2008 were $7.14 million, compared to $14.35 million in 2007.

The biggest impact was from Qianzhen Mining, whose zinc processing operations were affected by a shortage of ore supplies and sharp decrease of the price of metals. This resulted in a reduction of revenue of 82.36% or about $5.83 million compared to 2007. Revenue from Xiangzhen Mining's fluorite products decreased 43.92% to $3.70 million as compared to $6.61 million in 2007. This was due to the fact that the trial operation of the newly completed fluorite processing plant was unsatisfactory.

China Shen Zhou, through its subsidiary American Federal Mining Group, is engaged in the exploration, development, mining, and processing of fluorite and nonferrous metals such as zinc, lead and copper in China. It has also recently acquired the Tun-Lin copper-gold operations in western Kyrgyzstan.

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