The Company is currently conducting a surface exploration diamond drill program in an attempt to intersect potential high-grade gold ore bodies at depth below previous mine workings in the Bates-Hunter Mine. Historically, this mining district has produced more than 4,000,000 ounces of gold with 25% of the gold coming from the area immediately surrounding the Bates-Hunter project. In addition to the drill program, dewatering and mine rehabilitation work is underway. Such on-going efforts focus on the further development of this potentially valuable resource.

Drilling Program
The Company is engaged in an active exploration diamond drill program in an attempt to locate potential extensions at depth of high-grade gold ore bodies mined at higher levels in the mine. On August 15, 2007, diamond drill hole BH07-07 was at a depth of 1,521 feet. The objective of drill hole BH07-07 is to reach the Stope Plunge Target zone, a projected extension of the Bates Vein ore shoot that had previously been mined to a depth of 745 feet from the surface in the Bates-Hunter Mine workings. Figure 1 (http://www.witsnews.com/BH07-07Figure1.jpg) depicts a longitudinal section of the Bates Vein showing the historic workings in the Bates-Hunter Mine. The yellow band represents what is believed to be the extension of the ore shoot to depth and includes the projected piercing point of drill hole BH07-07.

The Company anticipates that it will be able to intersect the Stope Plunge Target at a down-hole depth of approximately 1,650 to 1,920 feet. Figure 2 (http://www.witsnews.com/BH07-07Figure2.jpg) represents a cross-section along the plane of drill hole BH07-07. It illustrates that the actual depth of the target will depend on the dip of the Bates Vein. A dip is described as the angle of inclination or slope measured from the horizontal plane downward. At the surface, the vein is near vertical, but the attitude of the Bates-Hunter shaft indicates that the vein may dip to the southeast at depth. Drill hole BH07-07 potentially intersects a vertical vein at approximately 1,920 feet as well as a vein that dips 80 degrees to the southeast at approximately 1,650 feet. The yellow areas on Figure 2 show the anticipated locations of the Stope Plunge Target at these vein dips. It can be seen that the drill hole is expected to pass through both of these areas and, therefore, both of the possible projected targets should be tested. An animated video of the current state of diamond drill hole BH07-07 can be found here (http://www.witsnews.com/BH07-0708-17-20078sm.avi) or on the Company's website at www.witsbasin.com.

On-site drilling conditions have been challenging throughout the course of the program. Drill hole BH07-07 has encountered underground workings and several voids that have affected drill-fluid circulation. The hole has also required the placement of numerous wedges to keep it on target. Wits Basin is working in close consultation with its drilling contractor, G&O Diamond Drilling Contractors of Hay Lakes, Alberta, Canada to ensure careful progress toward completion of the hole. Barring any unforeseen complications, the Company anticipates that it could reach its drill target in September or October. Additional geological details of intercepts, along with the accompanying assay results, will be provided as they become available.

Safety, Dewatering and Mine Rehabilitation
Safety continues to be a top priority at the Bates-Hunter project. All 12 Bates-Hunter crew members recently completed the state-sponsored mine safety program and have received their passing certificates. Hydrostatic pressure and water flows and levels are being carefully monitored and controlled.

The dewatering of the Bates-Hunter shaft is a continuous process. While water levels have been as low as 350 feet, levels have fluctuated due to recent heavy water run-offs that outpaced pumping ability to maintain equilibrium. Equipment repairs during this time have also slowed the water evacuation process causing the water levels to be as high as 260 feet. The Company has determined that there is a need to construct a multi-step water-pumping system with several stations to move larger volumes of water from lower levels upward. The Company is also in the process of adding a larger pump with additional filtering to help ensure the steady dewatering progress. Once this new pump and its attendant parts have been installed, it is anticipated that all the necessary equipment will be in place to properly dewater the entire shaft.

The next dewatering targets are Level 424 and Level 468 (see Figure 1). When reached, the Company will evaluate whether these levels are suitable for locating an underground diamond drill station. Underground drilling from within the Bates-Hunter workings would test the mineralization potential of adjacent ground both northwest and southeast of the Bates Vein.

Rehabilitation of the shaft progresses as dewatering occurs. This includes removing debris, replacing and adding timbers for support, adding refuge chambers, stringing lights and wiring, installing ladders, and fireproofing timbers. The Company is working closely with the federal Mine Safety and Health Administration (MSHA) to ensure safe progress of the shaft rehabilitation.

Land Acquisition
The Company is in the process of negotiating for mineral and surface rights with nearby property owners for additional tracts in the Bates-Hunter project area. These acquisitions, which hold three other historically gold-producing mines, could add an additional 15 parcels totaling approximately 16 acres adjacent to the Bates-Hunter claims.

Water Treatment Plant
In 2004, the Bates-Hunter water treatment plant was identified as the selected remedy for the U.S. Environmental Protection Agency's (EPA) Clear Creek/Central City Superfund Site, Operable Unit 4 (ftp://ftp.epa.gov/r8/RODS/ClearCreekOU4ROD.pdf). The EPA and the Company have been in negotiations to reach an agreement to use the Bates-Hunter water treatment facility to treat and process excess water in the remediation of the tailings from other mines in the area. The remediation would be paid from the Superfund account, thus benefiting the Company with incremental revenue should an agreement be reached. The Company will provide details of any agreement as soon as it is final.

About Bates-Hunter
The Bates-Hunter Mine is located in Central City, Colorado, approximately 35 miles west of Denver. The Bates Vein was the second lode discovered in Colorado and helped spark the great Colorado gold rush of the mid-1800s. The nine principal veins that underlie and are controlled by the Bates-Hunter property have historically produced approximately 750,000 ounces of gold.

Click here (http://www.witsnews.com/images807.htm) to view the
Bates-Hunter photo gallery.

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About Wits Basin Precious Minerals Inc.

We are a minerals exploration and development company holding interests in three exploration projects and currently do not claim to have any mineral reserves on any project. 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 - News) visit our website at www.witsbasin.com.

Forward-Looking Statements and Risk Factors

The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. This press release contains 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 include, among others, the Company's and CGMR's ability to obtain or maintain regulatory approvals; the Company's ability to obtain necessary financing; the Company's ability to consummate the Easyknit merger; the Company's and CGMR's ability to complete the various mining project acquisitions in the People's Republic of China, which are subject to execution of final documentation, completion of due diligence and receipt of necessary financing; and other risks and uncertainties described in the Company's filings from time to time with the Securities and Exchange Commission (the "SEC"). The Company 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 on Form 10-KSB, quarterly reports on Form 10-QSB and reports on Form 8-K.

This press release does not constitute an offer to exchange or sell or an offer to exchange or buy any securities. This document may be deemed to be solicitation material in respect of the proposed merger of Wits Basin and Easyknit.

An offer of securities in the United States pursuant to a business combination transaction will only be made through a prospectus which is part of an effective registration statement filed with the SEC. In connection with the proposed transaction, Easyknit will file a registration statement on Form F-4, which will include a proxy statement of Wits Basin that also constitutes a prospectus of Easyknit, and other documents with the SEC. Shareholders of Wits Basin are encouraged to read the definitive registration statement on Form F-4 and any other relevant documents filed or that will be filed with the SEC, including the definitive proxy statement/prospectus that will be part of the definitive registration statement on Form F-4, as they become available because they contain or will contain important information about the proposed merger. The final proxy statement/prospectus will be mailed to shareholders of Wits Basin. Investors and security holders will be able to obtain the documents free of charge at the SEC's web site, www.sec.gov, or from Wits Basin's Investor Relations at Lighthouse Communications (866) 739-0390 or info@lhcom.bz.

Participants in Solicitation

Wits Basin and its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Wits Basin in connection with the proposed merger. Information about the directors and executive officers of Wits Basin and their ownership of Wits Basin common stock is set forth in its Annual Report on Form 10-KSB, as filed with the SEC on April 16, 2007. Additional information regarding the interests of such participants may be obtained by reading the registration statement on Form F-4 and proxy statement/prospectus when it becomes available.