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 5 January 2010

LEYSHON RESOURCES LIMITED

COMMENCEMENT OF SHARE BUY-BACK

Leyshon Resources Limited (AIM/ASX:LRL) advises that it will implement an on-market share buy-back (Buy-Back) of up to 21,800,000 fully paid ordinary shares in the Company. This equates to approximately 10% of the Company's fully paid issued capital.

The Buy-Back will commence on 19 January 2010 and will have a maximum duration of 12 months. The prices to be paid will comply with the ASX Listing Rules, being no more than 5% above the average price paid for the Company's shares over the five previous trading days. 

The Company has A$48 million in cash held on short-term deposit in Australia together with a working capital balance of RMB1.9 million held in Beijing. 

At current exchange rates this equates to approximately 12 pence per share (A$0.22 per share). 

Seymour Pierce in London and Blackswan Equities in Australia will handle the Buy-Back on the Company's behalf.

As previously advised the Company is pleased with the project deal flow it has received to date and is actively working on a number of investment opportunities which have the potential to fit the criteria set out in the proposed investing policy. 

Managing Director Paul Atherley commented: "Following the strong shareholder support for the proposed investing policy the Company will continue to be located  in Beijing and will draw on its six years' experience in China to identify projects located in those countries and commodities which are of interest to Chinese groups." 

For further information contact: 

Leyshon Resources Limited 

Paul Atherley - Managing Director 

Tel: +86 137 1800 1914 

patherley@leyshonresources.com

Seymour Pierce                     Blackswan Equities 

Jonathan Wright                     Tim Weir

Tel: +44 (0)207 107 8000       Tel: +61 89346 0303

http://www.leyshonresources.com

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