China Shen Zhou Mining & Resources, Inc. Announces Financial Results for the First Quarter Ended March 31, 2010

(All figures are in U.S. dollars)

BEIJING, May 14 /PRNewswire-Asia/ -- China Shen Zhou Mining & Resources, Inc. (NYSE Amex: SHZ) ("China Shen Zhou", or the "Company"), a leading Company engaged in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in China, today announced the financial results for the first quarter ended March 31, 2010.

First Quarter 2010 Highlights:

Total net revenues increased by 50% in the first quarter of 2010 as compared to the same period in 2009 to US$0.9 million from US$0.6 million.

Net loss attributable to the Company and subsidiaries decreased by 66.7% in the first quarter of 2010 as compared to the same period in 2009 to US$0.8 million from US$2.4 million.

Net Loss from operations decreased by 23.1% in the first quarter of 2010 as compared to the same period in 2009 to US$1 million from US$1.3 million.

Basic and diluted net losses per share from continuing operations was US$0.02 in the first quarter of 2010 and US$0.10 as compared to the first quarter of 2009.

"Although we had net loss in the first quarter of 2010, the net loss number was significantly less as compared with the same period of 2009," said Ms. Xiaojing Yu, the Chairwoman and CEO of the Company. "The production situation of our subsidiaries met expectations and the price of fluorite ore and nonferrous metals were steady. Thus we are very confident in carrying out the operational plan of the full year of 2010."

About China Shen Zhou Mining & Resources, Inc.

China Shen Zhou Mining & Resources, Inc., through its subsidiary, American Federal Mining Group ("AFMG"), is engaged in the exploration, development, mining, and processing of fluorite and nonferrous metals such as zinc, lead and copper in China. The Company has the following principal areas of interest in China: (a) fluorite extraction and processing in the Sumochaganaobao region of Inner Mongolia; (b) zinc/copper/lead exploration, mining and processing in Wulatehouqi of Inner Mongolia; and (c) zinc/copper exploration, mining and processing in Xinjiang.

For more information, please visit http://www.chinaszmg.com/

Safe Harbor Statement

Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in the People's Republic of China, variations in cash flow, fluctuation in mineral prices, risks associated with exploration and mining operations, and the potential of securing additional mineral resources, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

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

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

Financial Tables Follow

CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

March 31, December 31,

2010 2009

(Unaudited) (Audited)

ASSETS

Current assets:

Cash and cash equivalents $ 869 $ 333

Accounts receivable, net 272 302

Other deposits and prepayments, net 1,080 855

Inventories 5,433 3,721

Restricted assets 732 740

Total current assets 8,386 5,951

Prepayment for office rent 230 280

Available for sale investment 146 146

Property, machinery and mining assets, net 34,359 34,902

Total assets $ 43,121 $ 41,279

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 4,546 $ 4,694

Short term bank loans 3,160 3,603

Other payables and accruals 9,181 6,667

Taxes payable 351 333

Total current liabilities 17,238 15,297

Due to related parties 2,281 2,297

Total liabilities 19,519 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 March 31, 2010 and December 13, 2009

respectively $ 28 $ 27

Additional paid-in capital 29,270 28,518

Statutory reserves 1,672 1,672

Accumulated other comprehensive income 3,819 3,839

Accumulated deficit (11,153) (10,342)

Stockholders' equity - China Shen Zhou Mining &

Resources, Inc. and 23,636 23,714

Subsidiaries

Noncontrolling interest (34) (29)

Total stockholders' equity 23,602 23,685

Total liabilities and stockholders' equity $ 43,121 $ 41,279

CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Amounts in thousands, except per share data)

For the Three Months Ended

March 31,

2010 2009

(Unaudited) (Unaudited)

Net revenue $ 921 $ 619

Cost of sales 848 557

Gross profit 73 62

Operating expenses:

Selling and distribution expenses 13 4

General and administrative expenses 1,078 1,392

Total operating expenses 1,091 1,396

Net loss from operations (1,018) (1,334)

Other income (expense):

Interest expense (86) (962)

Other, net 288 96

Total other income (loss) 202 (866)

Loss from continuing operations before

income taxes (816) (2,200)

Income tax expenses - -

Loss from continuing operations (816) (2,200)

Discontinued operations :

Loss from operations of discontinued component,

net of taxes - (158)

Loss from discontinued operations - (158)

Net loss (816) (2,358)

Less: Noncontrolling interests attributable to the

noncontrolling interests 5 (22)

Net loss - attributable to China Shen Zhou Mining

& Resources, Inc. and

Subsidiaries (811) (2,380)

Other comprehensive income:

Foreign currency translation adjustments (20) 191

Comprehensive loss $ (831) $ (2,189)

Net loss per common share - basic and diluted

From continuing operations (0.02) (0.10)

From discontinued operations - (0.01)

$ (0.02) $ (0.11)

Weighted average common shares outstanding

- Basic and Diluted 27,762 22,215

CHINA SHEN ZHOU MINING & RESOURCES, INC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands, except share data)

For the Three Months Ended

March 31,

2010 2009

(Unaudited) (Unaudited)

Cash flows from operating activities:

Net loss $ (811)$ (2,380)

Adjustments to reconcile net loss to net

cash provided by operating activities:

Loss from operations of discontinued

component, net of income tax benefits - 158

Depreciation and amortization 695 1,051

Fair value adjustment of warrants - 21

Accrual of coupon interests and accreted

principal - 386

Amortization of deferred financing costs - 401

Amortization of debt issuance costs - 106

Noncontrolling interests (5) (22)

Forgiveness of payroll payables (300) -

Changes in operating assets and liabilities:

(Increase) decrease in -

Accounts receivable 30 195

Other deposits and prepayments (226) (88)

Prepayment for office rent 50 10

Inventories (1,717) 397

Restricted assets 7 -

Increase (decrease) in - - -

Accounts payable (142) (203)

Other payables and accruals 3,574 230

Taxes payable 18 (147)

Net cash provided by operating activities

from continuing operations 1,173 115

Net cash provided by operating activities

from discontinued operations - 66

Net cash provided by operating activities 1,173 181

Cash flows from investing activities:

Purchases of property, machinery and

mining assets $ (208)$ (31)

Net cash used in investing activities from

continuing operations (208) (31)

Net cash used in investing activities (208) (31)

Cash flows from financing activities:

Due to related parties $ (14)$ (117)

Repayment at short-term bank loans (731) -

Proceeds from short-term bank loans 293 -

Net cash used in financing activities (452) (117)

Foreign currency translation adjustment 23 52

Net decrease in cash and cash equivalents 536 85

Cash and cash equivalents at the beginning

of the period 333 205

Cash and cash equivalents at the end of

the period $ 869 $ 290

Non-cash investing and financing activities

Shares issued to employees as share based $

compensation 753 -

Supplemental disclosures of cash flow

information:

Cash paid for interest expenses $ 74 $ 47

Cash paid for income tax $ - $ -

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