Jinshan Gold Mines Inc. is pleased to announce receipt of the business license for the Dadiangou gold property in Gansu province, China. Jinshan will now proceed with delineation of the bulk-tonnage gold target at Dadiangou through a planned diamond drill program and additional surface exploration work.

"The Dadiangou exploration program should provide us with additional growth opportunities over and above the commencement of commercial production at our CSH 217 gold mine, for which we recently received our Mining Permit," said Jay Chmelauskas, Jinshan's President. "The drilling program at Dadiangou will be focused on near-term resource delineation. It provides an opportunity to grow our company beyond a single producing mine."

The Dadiangou gold system is located in the central part of China in Gansu Province within the prolific Qinling Fold Belt. The exploration license covers approximately 15 square kilometres and is owned by the Chinese joint-venture partner, the Northwest Industrial Nuclear Economic Technical Corp. (part of the Shaanxi Nuclear Geology Bureau of China). The Bureau has defined an extensive, shear-zone-hosted, bulk-tonnage gold system with widths of up to 40 metres and a mapped strike length reported to be over three kilometres.

The Chinese partner has tested the gold mineralization with three exploration adits, including cross-cuts across the zone every 50 metres. Two of the underground drifts and crosscuts were designed to test the vertical continuity of the system. The results of continuous underground channel sampling indicate an average gold grade of approximately 1.5 grams per tonne over significant widths (greater than 40 metres in some locations). Jinshan has re-assayed approximately 1,048 pulp samples from the Chinese partner's underground sampling program, which included 22 standardized pulps randomly injected as check samples. The re-assaying was conducted at the SGS Laboratory in Tianjin, China, using standard fire assay techniques. To date, only about 1/3rd of the known mineralization at Dadiangou has been tested by the underground work. The untested areas along strike and below the current workings are expected to offer excellent potential to identify Dadiangou as a significant, bulk-tonnage gold deposit.

The joint-venture agreement with the Chinese partner allows Jinshan to earn a 71% interest in the joint venture by incurring exploration expenditures of US$3.3 million and by making payments to the Chinese partner of US$1.3 million. Jinshan can further increase its ownership in the property to a minimum of 80% by conducting additional property expenditures of US$2.8 million, which include payments to the Chinese partner of US$0.3 million. The Chinese partner then can choose to participate at a 20% level for all further development and capital expenditures, or be diluted.

Mr. Locke Goldsmith, P.Geo., P.Eng., Qualified Person for the Dadiangou property, has reviewed the data provided by the Chinese partner and overseen the pulp re-assay program. Mr. Goldsmith supervised the preparation of the technical information in this release.