Wits Basin Precious Minerals Inc. (OTCBB:WITM) (the "Company") reports that its joint venture with London Mining Plc, China Global Mining Resources (CGMR), is in the process of completing the next phase of required funding for acquisition and development for its iron ore business in the People's Republic of China (PRC).

Background

In December 2008, the PRC Ministry of Commerce granted CGMR's request to purchase the existing Xiaonanshan iron ore mine located in the Anhui province. In 2009, the PRC government mandated that CGMR purchase and consolidate two neighboring mines along with the existing mine into one single open-pit mining operation.

When a new mining permit was issued on February 11, 2009, the consolidation phase of the project was well underway with all permits, licenses, and legal authority to operate all three mines now vested with our wholly-owned company in Ma Anshan. In the third quarter of 2009, the Company signed a non-binding memorandum of understanding (MOU) to purchase the two additional mines, referred to as the SBQ and the GQ, located to the north and contiguous with our Xiaonanshan mine.

At the same time, the Company determined that additional capital provided through third-party funding would be needed for integration, acquisition, and consolidation of the mines. CGMR sought an investment banking firm for the task.

During the fourth quarter of 2009, CGMR announced the engagement of ABN AMRO Bank N.V., Hong Kong Branch, a subsidiary undertaking of The Royal Bank of Scotland Group plc (RBS), to advise the Company on a fundraising. This November 2009 announcement also included notice that longer term financing may involve a public listing of CGMR.

At the end of the first quarter of 2010, CGMR obtained an independent third-party resource report drilled to internationally accepted Joint Ore Reserves Committee (JORC) standards from SRK Consulting for 208,000,000 tonnes of iron ore mineral resources in three categories at economic grades. Additionally, along with RBS, the Company identified a short list of potential investors and commercial banks in order to secure funding.

Current Financing Options and Plans for the Remainder of 2010

CGMR intends to raise sufficient capital to acquire and integrate the SBQ and the GQ mines as well as fund improvements to and consolidate the Xiaonanshan mine into the SBQ and GQ mines. The Company believes this funding will include amounts which will enable the resolution of all outstanding requirements to consolidate the three open pit mines into one large single open pit mine. Additional resource opportunities also exist in nearby locations including the Matang resource, also located in the Anhui province.

Information Regarding the Current Status of Preservation of Rights and Arbitration

The original seller of the Xiaonanshan mine and CGMR reached an agreement whereby all disputes as to any payments or claims will not be handled in a court system but rather through a process of arbitration. This agreement is key to the Company's ability to continue progressing forward with financing. The seller determined his rights required preservation thus the request for arbitration at this time. The Company believes the seller intends to work together with CGMR and its' lenders, investors, and partners to obtain the intended outcome to which the Company contracted. While the original Equity Transfer Agreement (ETA) allows either party, buyer or seller, to claim a damage award of USD $33 million, such amounts owed or not owed, claimed or not claimed, will be settled through the arbitration process in the event mutual agreements are not reached outside of the arbitration process. CGMR will reserve all rights and remedies but fully intends to cooperate with the sellers of both properties as well as the PRC governmental mandate for integration and consolidation.

Therefore, CGMR and the seller continue efforts on all fronts to secure funding, regardless of either parties' respective position in the arbitration. In fact, CGMR, through its' representative, recently attended a meeting with the seller and a major Chinese financial institution and believes this will lead to a potential financing. This potential financing, together with the agreement of cooperation of all parties, is fundamental to the development of this business.

About Wits Basin Precious Minerals Inc.

Wits Basin is a minerals exploration and development company. We own approximately 93% equity interest in Standard Gold, Inc., who holds title to the past producing gold mine in Colorado known as the Bates-Hunter Mine. We also own 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) 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 Wits Basin 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 Wits Basin's filings from time to time with the Securities and Exchange Commission. Wits Basin 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.