Wits Basin Provides Production Update on Chinese Iron Ore Joint Venture Project

MINNEAPOLIS--(BUSINESS WIRE)--Wits Basin Precious Minerals Inc. (OTCBB: WITM.OB) is pleased to announce that the first attributable production from the China Global Mining Resources (CGMR) Joint Venture with London Mining Plc post acquisition contributes positive operating cash flow to the joint venture group in the second quarter.

Actual operating costs were less than US$40 per tonne, which was lower than originally estimated. Operational costs are expected to increase during the remainder of the year due to the implementation of safety improvements and resource development work, although these should be partially offset by operating efficiencies.

CGMR has an expansion opportunity, which it intends to pursue by entering into a non-binding Memorandum of Understanding to acquire a neighboring mine, which has additional resources and an existing production facility capable of processing 300,000 tonnes of iron ore concentrate tpa.

In 2010, Wits Basin’s per share pro forma profit could exceed seven cents based on its 50% ownership in CGMR, completing the neighboring acquisition, and assuming CGMR has returned to London Mining its priority $45 million return of investment.

About Wits Basin Precious Minerals Inc.

Wits Basin is a minerals exploration and development company. We own a past producing gold mine in Colorado known as the Bates-Hunter Mine; a 35% equity interest in Kwagga Gold (Barbados) Limited, which holds rights to the FSC gold project located in South Africa; a 50% equity interest in China Global Mining Resources (BVI) which owns an iron ore mine and processing plant in China, and certain rights in the Vianey silver project in Mexico. We do not claim to have any mineral reserves at the Bates-Hunter Mine, the FSC or the Vianey properties. Our common stock trades on the Over-the-Counter Bulletin Board under the symbol "WITM." To find out more about Wits Basin Precious Minerals Inc. (OTCBB: WITM.OB) visit our website at www.witsbasin.com.

Forward-Looking Statements and Risk Factors

Certain statements included in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. Such statements are valid only as of today, and we disclaim any obligation to update this information. These statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes. These risks and uncertainties relate to the Company and its subsidiaries, and include, among others, the ability to obtain or maintain regulatory approvals; the ability to obtain necessary financing; and other risks and uncertainties described in the Company's filings from time to time with the Securities and Exchange Commission. The Company disclaims any obligation to update its forward-looking statements.

In addition, the exploration for and development of mineral deposits involves significant financial risks, which even experience and knowledge may not eliminate, regardless of the amount of careful evaluation applied to a process. While the discovery of a mineral deposit may result in substantial rewards, few properties are ultimately developed into producing mines. Moreover, we cannot make any estimates regarding probable reserves in connection with any of our projects and any estimates relating to possible reserves are subject to significant risks. Therefore, no assurance can be given that any size of reserves or grades of reserves will be realized. If a discovery is made, the mineral deposit discovered, assuming recoverable, may differ from the reserves already discovered and recovered by others in the same region of the planned areas of exploration. Further, the cost of exploration and exploitation can be extensive and there is no assurance that we will have the resources necessary or the financing available to pursue projects we currently hold interests in or to acquire interests in other mineral exploration projects that may become available. The risks we face are numerous and detailed information regarding these risks may be found in filings made by us with the Securities and Exchange Commission, including our most recent annual report.

Wits Basin Precious Minerals Inc.
CEO Stephen King, 612-490-3419
or
Investor Relations, 866-739-0390
info@lhcom.bz