MINNEAPOLIS--(BUSINESS WIRE)--

Wits Basin Precious Minerals Inc. (OTCBB:WITM) has terminated its merger agreement with Easyknit Enterprises Holdings Limited, effective immediately, with delivery of a notice of termination to Easyknit and Race Merger, Inc. today. The Company decided to terminate the merger for, among other reasons, the existence of material adverse effects relating to Easyknit under the merger agreement; Wits Basin's dissatisfaction in its sole and absolute discretion in the due diligence of Easyknit; and breaches of covenant by Easyknit under the merger agreement. The three parties to the proposed merger continue to be involved in litigation which is proceeding in Minnesota state court. Wits Basin intends to continue to vigorously enforce its rights and remedies in the pending action.

"With the merger behind us, we can now focus our energies on unlocking our accumulated assets' potential," said Wits Basin CEO Stephen D. King. "We believe we will be able to capitalize on the potential of mining properties located in South Africa, Mexico, the United States and the People's Republic of China. The management and operation of these properties was and remains independent from Easyknit and the now-terminated merger transaction.

"Progress continues to be made at our Bates-Hunter gold mine in Colorado as evidenced by the recently released encouraging assay results. We are working with our partner Journey Resources to resume full-scale mapping and exploration activities on the Vianey silver-lead-zinc property in Mexico. In South Africa, we believe we are nearing the finalization of a plan to potentially begin exploratory drilling during the first quarter of 2008 on the extensive FSC gold exploration project. We will also continue advancing our efforts on our projects presently underway in China."