Wits Basin Provides Update on China Global Mining Resources

Business Wire, July 23, 2007

MINNEAPOLIS -- Wits Basin Precious Minerals Inc. (OTCBB:WITM) which has the option to purchase China Global Mining Resources ("CGMR"), is pleased to provide this update. CGMR is a British Virgin Islands corporation which has the right under certain agreements to acquire varying interests in gold, nickel and iron ore mining properties in the People's Republic of China ("PRC").

To date, Wits Basin has provided CGMR capital in the form of loans in excess of US$8 million to secure rights to develop four various properties in the PRC. The option exercise requires a nominal equity payment.

The capital to procure these development rights was provided by China Gold, LLC of Kansas City, Missouri pursuant to the Company's existing line of credit with such firm. The remaining $15 million on the line of credit is subject to approval by both lender and borrower prior to drawdown. The terms of this loan provide that any outstanding balance immediately prior to the completion of the merger with Easyknit Enterprise Holdings Limited (SEHK: 616), will automatically convert into the Company's common stock at $1 per share.

The long term financing for these projects is believed by the Company to be available subject to the completion and satisfaction of all necessary and required due diligence and execution of final documentation. This due diligence includes but is not limited to approvals by the local, and in some cases, Central Government of the PRC as well as verification of rightful land position, permits and environmental compliance. This due diligence requires verification to the satisfaction of all governing authorities in addition to local governments and the Central Government, such as stock and various other regulatory authorities. The current environment in PRC to foreign investments is a favorable climate and the Company believes approvals will be granted for either joint ventures or wholly owned acquisitions. The process for both financing and Government approvals are closely tied together. All financings will require final and complete due diligence and all Governmental approvals will require complete financing. This means the time line for closings will likely involve several steps of final third party reports and review then followed by final Governmental submissions. It is likely to take 30 days or longer to finalize all outside due diligence and an additional similar time frame for Governmental consents.

The Company has explored several methods of financing these properties including the formation of joint ventures, direct stock sale and stand-alone investments with IPO targets. These various financing options have resulted in several non-binding term sheets as well as expressions of interest to proceed. Any financing or other ownership structure will require the consent of Easyknit, which consent can not be unreasonably withheld.

Summary of Properties

CGMR has secured rights to develop or control the following properties in the PRC:

1. The iron ore property located in Maanshan, known as Nanjing Sudan Mining Co., Ltd. and assets from both of Maanshan Zhao Yuan Mining Co., Ltd. and Xiao Anshan Mining Co., Ltd.

2. An Iron Deposit at Lao Wan in the Hubei Province, known as the Yun County Changjiang Mining Company Limited.

3. A nickel mine, known as the Sino-American Hua Ze Nickel & Cobalt Metal Co., Ltd., l.

4. The Taizhou Gold Mine in Xian, Shaanxi Province, currently generating a positive cash flow.

About the Maanshan Iron Ore Properties

The principal business of Maanshan Mining is the mining, processing and selling of iron ore and concentrates. The Xiao Anshan iron ore mine is located in Maanshan in the Anhui province. Maanshan Mining is comprised of two operating iron ore mines: 1) The Xiao Nan Shan Iron Deposits ("Xiao Nan Shan") and 2) the Ma Tang Iron Deposits ("Ma Tang"). In addition, there is a processing plant called the Nanjing Sudan Processing Plant.

Maanshan Mining estimates that the total iron ore available for extraction from the two mines, (both of which are open pits) is approximately 95 million tons, with Xiao Nan Shan at approximately 73 million tons and Ma Tang at approximately 22 million tons. Maanshan Mining believes that these extraction estimates are sufficient to allow for mining activities, under the proposed production targets, to continue for approximately 15 years.

The proximity of the two mines to its markets allows Maanshan's customers access to favorably low transportation costs, especially in comparison with those of imported iron ore.

Maanshan Mining completed a new production line in June 2006, which has increased overall production of iron ore concentrates by 150% to 250,000 tons from 100,000 tons per annum previously. Furthermore, Maanshan Mining plans to increase the production capacity of its mining operations and processing capability to produce 600,000 tons of iron ore concentrates in 2008 and 1,000,000 tons of iron concentrates in 2009.

Once the Company obtains its interest in this mine, the Company intends to use a portion of its financing commitments to fully permit and add development to these two properties to the extent permitted under PRC mining law.