CHNR accepts subscriptions for $35 million in shares and warrants

HONG KONG, August 8, 2007 – CHINA NATURAL RESOURCES, INC. (NASDAQ: CHNR), a company based in the People’s Republic of China, today announced that it had entered into subscription agreements with several non-U.S. investors to sell an aggregate of $35 million in common shares and warrants.  The investors agreed to purchase a total of 2,187,500 units, each unit consisting of two common shares and one warrant to purchase one common share, for a purchase price of $16.00 per unit.  The warrants are exercisable at $10.00 per share for three years commencing one year following the date of the closings.  Closings of the several purchases are expected to take place on or before August 26, 2007.

Mr. Li Feilie, President of China Natural Resources, Inc. commented: “We are pleased that there is significant investor interest in our operations and that investor confidence enabled us to negotiate advantageous terms that are not believed to be toxic to us or our shareholders.  We expect to use the proceeds to be received at the closings of these subscription agreements to enhance shareholder values through the acquisition of mining operations in the PRC that we anticipate will complement our existing mining operations and be accretive to earnings.”