Yinfu Gold Corp (ELRE)

[Slojab]

Bad news in the 8-K today.

Item 1.02 Termination of a Material Definitive Agreement.

On January 25, 2010 the registrant ("YinFu Gold") entered into a sales and purchase agreement to acquire three gold mines, one of which was the Rongcheng gold mine in Shandong Province, China, in exchange for 90,000,000 restricted shares of Yinfu Gold common stock that was reduced to 76,500,000 restricted shares of Yinfu Gold common stock pursuant to a revised sales and purchase agreement dated March 31, 2010. The purchase of the Penglai gold mine was closed on June 15, 2010 and the Company anticipates that gold production and exploration of Penglai will resume February 9, 2011 following inspection of the mine for compliance with local government safety regulations and ensuring compliance with those regulations. Yinfu Gold terminated the acquisition of the Wendeng gold mine on March 31, 2010.

Based on due diligence data, Yinfu Gold's management determined that the value of the Rongcheng gold mine was far below the agreed purchase value and has been in negotiation with owners of Rongcheng for a price reduction. On February 4, 2011 the seller of the Rongcheng gold mine elected to terminate the sale of the mine in accordance with the terms of the sale and purchase agreement and return the shares of Yinfu Gold's common stock deposited towards the purchase price of that gold mine.

Yinfu Gold's management intends to seek other gold mines to acquire.