Mr. Dwayne Yaretz reports

MUZHU ANNOUNCES PRIVATE PLACEMENT

Muzhu Mining Ltd. has arranged a non-brokered private placement of up to 6.25 million units at eight cents per unit for an aggregate amount of up to $500,000. Each unit is composed of one common share of the company and one non-transferable share purchase warrant. Each warrant is exercisable for a period of two years for the purchase of one additional common share of the company at a price of 12 cents per share, subject to the following acceleration provision: Should the common shares of the company trade on an exchange for 15 or more consecutive days at a price of 15 cents or greater, the company may, at its option, provide written notice to the holder requiring that the warrants be exercised within 30 days of the date of the notice, failing which the warrants shall immediately thereafter expire.

Proceeds will be used for general working capital and to further the company's exploration projects.

A finder's fee of a combination of cash, shares and/or warrants will be paid to eligible finders in relation to this financing, all in accordance with the Canadian Securities Exchange policies. All securities issued pursuant to the offering will be subject to a hold period of four months and one day from the date of closing. The offering and payment of finders' fees are both subject to approval by the CSE.

Muzhu is a Canadian publicly traded exploration company with a portfolio of highly prospective projects at various stages of development. Muzhu currently holds a 100-per-cent interest in the Sleeping Giant South project, located in the Abitibi greenstone belt, approximately 75 kilometres south of Matagami, Que. As well, Muzhu has executed two option agreements to acquire up to 80 per cent of the silver, zinc, lead XWG and LMM properties, and is currently pursuing an exploration agreement at the WLG mine, all located in the Henan province, China.