Overview

Jinshan Gold Mines is a new gold producer in China with the commencement of production from our Chang Shan Hao mine in July 2007. The open pit heap-leach mine is designed to produce approximately 120,000 ounces of gold per year, making the mine one of China’s largest gold producers. With a proven track record, Jinshan has a focused strategy to expand on its existing asset base and to continue to grow the company through its acquisition and exploration activities. China National Gold owns 42% of Jinshan’s shares.
Jinshan shares are listed on the Toronto Stock Exchange (trading symbol: JIN).

Chief Properties

Chang Shan Hao Gold Project

The Chang Shan Hao Gold Mine is one of China’s largest gold mines operated by a foreign company, placing Jinshan in an important leadership role. The gold mine is the first step in Jinshan’s growth strategy to becoming a significant gold producer in Asia.
It is expected that the mine will achieve nameplate production capacity of approximately 10,000 ounces per month (120,000 ounces per year) in 2008. During mine start-up and through the first winter of operation, leaching and gold production has been slowed by normal start-up conditions and colder than average temperatures. In future years, the volume of ore on the leach pad will be substantially increased and it is expected that solution temperature, volume and preg grade, will be easier to maintain, resulting in improved performance.

Dadiangou Project

The Dadiangou gold system is located in the central part of China in southern Gansu Province within the prolific Qinling Fold Belt. The license covers approximately 15 square kilometres and is owned by the Northwest Industrial Nuclear Economic Technical Corp. (part of the Shaanxi Nuclear Geology Bureau of China). The joint-venture agreement allows Jinshan to earn a minimum of 80% on the property, with the Chinese partner having the option to participate at 20%, or to become diluted.
Jinshan completed two phases of drilling in 2007 totalling 11,865 metres in 51 holes. This work resulted in an Inferred Resource of 778,000 ounces of gold contained within 26 million tonnes at a grade of 0.92 g/t gold which was released on January 31, 2008. This resource was based on Phase I and II diamond drilling and underground channel sampling of all accessible cross-cuts within the central portions of the Dadiangou Main Zone. The work has defined a mineralized structure in excess of 3,000 metres strike length and with typical widths of 50 to 60 metres.
Phase III diamond drilling commenced on June 23, 2008. The planned 3,000 metre program aims to provide sufficient infill data to allow resources to be upgraded to the Measured and Indicated categories. In addition, approximately 800 metres of additional strike extent will be tested to the west of previous drilling.
Preliminary metallurgical testwork (see July 22, 2008 press release) indicates that gold recoveries in excess of 90% can be achieved through simple cyanide leach processes.
In addition to the exploration activities at site this season, Jinshan is actively advancing the Dadiangou project towards a preliminary assessment study. Environmental, hydrogeological, metallurgical, and other studies are currently ongoing and will be used to support a preliminary assessment study. The Dadiangou Project is envisioned as a potential open-pit, cyanide-leach gold operation.

Xinjiang Exploration

Jinshan currently holds twelve exploration permits through a Sino-Foreign Joint Venture in which Jinshan holds a 99% share and the partner, Yunnan Geological and Mining Co. Ltd., holds a 1% share in Xinjiang Province, along the prolific Tianshan Gold Belt.
Targets include bulk-tonnage, sediment hosted gold deposits similar to Muruntau, Kumtor, and Jinshan’s CSH 217 Gold Mine. At Jinshan’s Changsheng project, geological and sampling crews are currently on site to complete a comprehensive surface program including mapping, grid rock-chip sampling, trench resampling and new trenching. Crews are also active at the Xingou property, where a program of detailed stream sediment sampling and prospecting is underway to prioritize areas for follow-up work later this year.

Management

• Zhaoxue Sun – Chief Executive Officer, Director and Chairman
• Mr. Ren Jian – Vice President and Secretary
• Mr. Ma Boping – Vice President of Corporate Administration
• X.D. Jiang – Vice President of Production and Technology
• Roger Walsh – Vice President of Corporate Development
• Keith Patterson – Vice President of Exploration
• Hu Long – Project Development

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