Jinshan Gold Mines Inc.

Jinshan Gold Mines Inc.

September 23, 2009 08:58 ET

Jinshan Enters Into Memorandum of Understanding to Acquire Mineral Property From China National Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 23, 2009) - Jinshan Gold Mines Inc. (TSX:JIN) is pleased to announce that it has executed a memorandum of understanding with China National Gold Corporation and another partner to acquire a 100% interest in the Jiama property. The Jiama property is a significant polymetallic deposit consisting of copper, molybdenum, gold, silver and other minerals. The parties will now commence the negotiation and preparation of definitive agreements regarding the purchase and sale of the property. As the acquisition will be a related party transaction under Canadian securities laws, Jinshan has established a special committee of independent directors to review the transaction. The Company has also commenced the process of preparing a NI 43-101 independent technical report and an independent valuation of the property. The valuation is expected to form the basis of a fairness opinion to be received by the special committee in completing its assessment of the transaction and negotiation of the acquisition price. If definitive agreements are concluded, completion of the transaction is anticipated to be subject to the approval of Jinshan's shareholders and the TSX, as well as customary conditions to closing.

The Jiama property is currently in the development stage, and the current owners have nearly completed construction of a first stage of mining and processing infrastructure that establishes an underground mining operation with a production capacity of 6,000 tonnes per day. The operation will produce a copper concentrate with gold and silver credits and a molybdenum concentrate. The property owners have also obtained relevant permits for initial mining operations on the property. Reserve and resource estimates on the property are being converted to CIM standards in connection with the upcoming NI 43-101 technical report on the property, which is scheduled to be completed in the fourth quarter of 2009.

About Jinshan

Jinshan is a mining company whose principal asset is the CSH Gold Mine located in Inner Mongolia, China. Jinshan's shares are listed on the Toronto stock exchange under the symbol JIN. China National Gold Corporation, a Chinese state-owned enterprise and the largest gold producer in China owns approximately 41% of Jinshan's shares.

Qualified Persons

Dr. Qingping Deng, President of Behre Dolbear Asia Inc., an independent qualified person as defined by National Instrument 43-101, supervised the preparation of the technical and scientific information regarding the Jiama property contained in this news release. Mr. Deng verified the data required to support the disclosure contained in this news release through a site visit and review of relevant documentation.

Please visit our website at: www.jinshanmines.com

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the completion of a definitive agreement and the commercial terms thereof for the acquisition of the Jiama property, the completion of NI 43-101 technical report on the property and independent valuation on the transaction and the completion of development work and production on the property is subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's MD&A, financial statements and other periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement, except to the extent required under applicable securities laws.

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