For more information, please contact:

In China:

Fulun Song

Office of the Board of Directors

China Shen Zhou Mining & Resources, Inc.

Tel: +86-10-8890-9976

Fax: +86-10-8890-6927

Cell: 13146358911

Email: investors@chinaszky.com

Web: http://www.chinaszmg.com

In the U.S.:

David Elias

Investor Relations

DME Capital LLC

Tel: +1-516-967-0205

Email: dave@dmecapital.com

HINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

September 30,

2010

December 31,

2009

(Unaudited)

(Audited)

ASSETS

Current assets:

Cash and cash equivalents

$

1,497

$

333

Accounts receivable, net

266

302

Other deposits and prepayments, net

1,189

855

Inventories

7,950

3,721

Restricted assets

8

740

Total current assets

10,910

5,951

Prepayment for office rent

133

280

Available for sale investment

149

146

Property, machinery and mining assets, net

34,699

34,902

Total assets

$

45,891

$

41,279

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

2,885

$

4,694

Short term loans

10,792

3,603

Other payables and accruals

5,283

6,667

Taxes payable

655

333

Total current liabilities

19,615

15,297

Due to related parties

2,322

2,297

Total liabilities

21,937

17,594

STOCKHOLDERS’ EQUITY:

Common stock ($0.001 par value; 50,000,000 shares authorized;

27,974,514 shares and 27,214,514 shares issued and outstanding

as of September 30, 2010 and December 31, 2009 respectively)

28

27

Additional paid-in capital

29,270

28,518

Statutory reserves

1,672

1,672

Accumulated other comprehensive income

4,180

3,839

Accumulated deficit

(11,144)

(10,342)

Stockholders’ equity – China Shen Zhou Mining & Resources, Inc. and Subsidiaries

24,006

23,714

Noncontrolling interest

(52)

(29)

Total stockholders’ equity

23,954

23,685

Total liabilities and stockholders’ equity

$

45,891

$

41,279

CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Amounts in thousands, except per share data)

For the Three Months Ended

For the Nine Months Ended

September 30,

2010

September 30,

2009

September 30,

2010

September 30,

2009

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Net revenue

$

3,619

$

1,715

$

6,722

$

3,060

Cost of sales

1,878

1,469

4,455

2,593

Gross profit

1,741

246

2,267

467

Operating expenses:

Selling and distribution expenses

16

52

67

70

General and administrative expenses

1,131

982

3,043

3,166

Total operating expenses

1,147

1,034

3,110

3,236

Net income (loss) from operations

594

(788)

(843)

(2,769)

Other income (expense):

Interest expense

(193)

(936)

(387)

(2,893)

Other, net

106

(8)

406

109

Total other income (loss)

(87)

(944)

19

(2,784)

Income (loss) from continuing operations before income taxes

507

(1,732)

(824)

(5,553)

Income tax expenses

–

–

–

–

Income (loss) from continuing operations

507

(1,732)

(824)

(5,553)

Discontinued operations :

Loss from operations of discontinued component, net of taxes

–

(414)

–

(660)

Loss from discontinued operations

–

(414)

–

(660)

Net income (loss)

507

(2,146)

(824)

(6,213)

Less: Noncontrolling interests attributable to the noncontrolling interests

8

–

22

22

Net income (loss) – attributable to China Shen Zhou Mining & Resources, Inc. and Subsidiaries

515

(2,146)

(802)

(6,191)

Other comprehensive income:

Foreign currency translation adjustments

295

25

341

216

Comprehensive  income (loss)

$

810

$

(2,121)

$

(461)

$

(5,975)

Net income (loss) per common share – basic and diluted

From continuing operations

0.02

(0.08)

(0.02

(0.25)

From discontinued operations

–

(0.02)

–

(0.03)

$

0.02

$

(0.10)

$

(0.02

$

(0.28)

Weighted average common shares outstanding

– Basic and Diluted

27,975

22,215

27,878

22,215

CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands, except share data)

For the Nine Months Ended

September 30,

2010

2009

(Unaudited)

(Unaudited)

Cash flows from operating activities:

Net loss

$

(802)

$

(6,191)

Adjustments to reconcile net loss to net cash used in operating activities:

Loss from operations of discontinued component, net of income tax benefits

–

660

Depreciation and amortization

2,226

1,865

Fair value adjustment of warrants

–

17

Accrual of coupon interests and accreted principal

–

1,169

Amortization of deferred financing costs

–

1,207

Amortization of debt issuance costs

–

318

Noncontrolling interests

(22)

(22)

Forgiveness of payroll payables

(300)

–

Changes in operating assets and liabilities:

(Increase) decrease in –

Accounts receivable

41

(61)

Other deposits and prepayments

(317)

(174)

Prepayment for office rent

147

152

Inventories

(4,157)

(615)

Restricted assets

746

(733)

Increase (decrease) in –

Accounts payable

(1,900)

973

Other payables and accruals

(460)

1,001

Taxes payable

316

(94)

Net cash provided by (used in) operating activities from continuing operations

(4,482)

(528)

Net cash provided by (used in) operating activities from discontinued operations

–

1

Net cash used in operating activities

(4,482)

(527)

Cash flows from investing activities:

Purchases of property, machinery and mining assets

(1,374)

(752)

Sales of property, machinery and mining assets

28

–

Net cash used in investing activities from continuing operations

(1,346)

(752)

Net cash provided by disposal of discontinued operations

–

–

Net cash used in investing activities

(1,346)

(752)

Cash flows from financing activities:

Due to related parties

(20)

(620)

Repayment at short-term loans

(3,464)

–

Proceeds from short-term loans

10,583

1,846

Net cash provided by financing activities

7,099

1,226

Foreign currency translation adjustment

(107)

(5)

Net increase in cash and cash equivalents

1,164

(58)

Cash and cash equivalents at the beginning of the period

333

205

Cash and cash equivalents at the end of the period

$

1,497

$

147

Non-cash investing and financing activities

Shares issued to employees as share based compensation

$

752

$

–

Supplemental disclosures of cash flow information:

Cash paid for interest expenses

$

285

$

166

Cash paid for income tax

$

–

$

–