SCR South China

RNS Number:3369P
South China Resources PLC
11 January 2007

11th January 2007


                           South China Resources PLC
                   ("South China Resources" or "the Company")

                             DANFENG PROJECT UPDATE

                         EXPLORATION LICENCE EXTENSION
                          AND UPDATE DRILLING RESULTS

South China Resources is pleased to report on the approval by the Ministry of
Land and Resources for extension of term for the Exploration Licence for the
Company's Danfeng Project ("Danfeng" or "the Project") in Shaanxi Province,
China.  The Company also announces further results from the recent drilling
programme at the Danfeng, which was designed to test the high grade copper and
molybdenum intercepts reported in earlier exploration by Chinese geological
brigades.

EXPLORATION LICENCE

The Company has received advice that the National level Ministry of Land and
Resources has approved a two year extension of term for the Danfeng Project
Exploration Licence.

The Company will now be required to pay relevant fees and will receive the
Exploration Licence document early this month.

DANFENG PROJECT DRILLING RESULTS

South China Resources has received assay results for drill holes SCZ-065 and 067
which pass obliquely across vertical holes in Chinese geological brigade section
17. Company drill holes SCZ-065 and 067 intersected both the upper and lower
copper zones identified previously by the Chinese brigades, with the following
results now available for holes SCZ-065 and 067:

Drill Hole Number                From                    To              Interval Length           Cu
                                (metres)              (metres)              (metres)               (%)

SCZ-065                          148.70                149.60                  0.90              0.65
and                              159.00                161.00                  2.00              1.42
and                              189.80                207.80                 18.00              1.78
             (incl.)             189.80                196.20                  6.40              3.07
             (incl.)             197.00                202.60                  5.60              1.70
SCZ-067                          155.40                160.80                  5.40              0.69
and                              180.50                185.45                  4.95              0.60
and                              198.00                205.20                  6.40              2.25

These results confirm the position and orientation of copper mineralised skarn
zones reported by the Chinese in previous drilling. The copper grades obtained
from Company drilling, together with those of the Chinese, define a pattern of
narrow lenses of mineralisation that thicken and thin down-dip.

The Company's results have not to this point in time confirmed the presence of
high grade molybdenum in the two copper mineralised skarn zones.

Separately, the Company has now received final assay results for drill holes
SCZ-062, 064 and 066. Results for these holes are as follows:

Drill Hole Number                From                 To               Interval Length           Cu
                               (metres)            (metres)                 (metres)            (%)

SCZ-062                          199.00                213.80                 14.80              1.31
             (incl.)             200.80                204.00                  3.20              2.29
SCZ-064                          143.60                149.40                  5.00              1.13
and                              158.60                162.85                  4.25              0.72
SCZ-066                           98.40                100.80                  2.40              0.71
and                              108.20                114.00                  5.80              0.98

These additional holes appear to support the interpretation by Company
geologists of an upper and lower copper mineralised skarn zone in this area of
the Project.

Down hole mineralised intercept depths for drill holes described above are
quoted relative to the natural surface of the mountain on which the holes have
been drilled. Given that the holes above have been drilled from elevations of
between 1442.30 and 1464.13 metres and that the valley floor is at an altitude
of approximately 1236 metres, there may be potential to access both the upper
and lower mineralised zones via the extension of existing horizontal adits
located at lower down the mountain or via development of a new adit.

The Company is awaiting the results of studies by independent, international
industry consultancy practice, SRK Exploration Services Ltd, into issues of
possible loss of molybdenite during the exploration and audit of the drilling,
core handling and sampling procedures of the Company, and the sample preparation
and assay procedures of the SGS laboratories used by the Company.  Any
recommendations made by the consultant to improve recovery of molybdenite will
be instituted so as to provide an accurate measure and assessment of molybdenum
mineralisation at Danfeng and its economic potential.

Qualified Person

Steven Leithead - MSc. Mineral Econ., BSc. App. Sc. (Geol) MAICD, MAusIMM has
reviewed the information contained in this announcement. Steven holds a Bachelor
of Applied Science (Geology) and a Masters degree in Mineral and Energy
Economics.  Steven is the Managing Director of South China Resources PLC.

Enquiries:

South China Resources PLC              Nabarro Wells               Parkgreen Communications
Alastair Clayton                       Hugh Oram                   Cathy Malins
+44 (0)20 7 493 7671                   +44 (0)20 7107 8000         +44 (0)20 7851 7480


Notes to Editors:

Background of the Danfeng Cu/ Mo Project:

Danfeng is a mineralised skarn porphyry related system, previously drilled, bulk
sampled and defined by Chinese exploration efforts. The exploration licence
covers an area of over 10.6 km2. Within this area, through a review of existing
data, sampling and inspection of five exploration adits and the on-going drill
programme, the Company is attempting to define an economic copper and molybdenum
resource in the Danfeng Project area.




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            The company news service from the London Stock Exchange
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