Jinshan Gold Mines Inc.
TSX : JIN

Jinshan Gold Mines Inc.

December 15, 2009 09:15 ET

Jinshan Gold Mines Redeems Outstanding Promissory Notes

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2009) - Jinshan Gold Mines Inc. (TSX:JIN) is pleased to announce that the US$40 million loan facility from its largest shareholder, China National Gold Group Corporation, has been used to redeem CDN$30 million of Jinshan's 12% promissory notes (Note A) originally issued in December 2006 maturing December 14, 2009. The terms of the new loan facility is non-revolving and will bear a very favorable interest rate of 6% per annum as opposed to the 12% per annum on the promissory notes, and is unsecured, with accrued interest payable quarterly. Subject to prior repayment, the outstanding balance of the loan will become due and payable in December, 2011.

The balance of the proceeds from the loan facility will be used to redeem on January 11, 2010, ahead of the maturity date of June 26, 2010 its CDN$12.5 million of Jinshan's 12% promissory notes (Note B) originally issued in June, 2007, maturing on June 26, 2010. The remaining CDN$7.5 million of Jinshan's 12% promissory notes (Note C) originally issued in June 2007, and maturing on June 26, 2010, are owned by China National Gold Corporation.

About Jinshan

Jinshan is a mining company whose principal property is the CSH Gold Mine. Jinshan began producing gold at the CSH Gold Mine in July 2007 and is actively advancing its portfolio of gold exploration properties in China. Jinshan's shares are listed on the TSX 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.

Forward-Looking Statements: Statements in this release that are forward-looking statements, are 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. Jinshan does not assume the obligation to update any forward-looking statement, except in accordance with applicable securities laws.

Contact Information