Jinshan Gold Mines Inc.

Jinshan Gold Mines Inc.

April 27, 2010 10:03 ET

Jinshan Gold Mines Sells Its Dadiangou Gold Deposit In Gansu Province

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2010) - Jinshan Gold Mines (TSX:JIN) is pleased to announce that Gansu Pacific Mining Co. Ltd. (a indirectly owned subsidiary of Jinshan) and its joint venture partner, Nuclear Industry Northwest Economic and Technology Co., have entered into an agreement to sell the Dadiangou gold project in Gansu Province, China. The parties are selling the project to Gansu Zhongjin Gold Mining Co. Ltd., a subsidiary of Zhongjin Gold Corporation Limited, a company listed on the Shanghai Stock Exchange and a related party of China National Gold Group, following an auction process and review and consideration by the independent members of the board of the company. The purchase price is RMB 88 million (Cdn.$13.1 million), of which the Company will be entitled to 53%, or RMB 46.6 million (Cdn.$7 million).

The Dadiangou gold project is an advanced exploration project located on a licensed area of 14.91 km2 in Gansu Province, China. The joint venture parties had identified a mineral resource on the property consisting of total 20.0 million tonnes of Indicated Resources at 0.87 grams per tonne for 544,910 ounces of contained gold and 16.6 million tonnes of Inferred Resources at 0.96 grams per tonne for 497,950 ounces of contained gold, all at a 0.4 gram per tonne cut-off. Following the evaluation of the 2008 exploration program, the Dadiangou project fell below Jinshan's targeted tonnes contained threshold and did not fit the company's strategy. The transaction is subject to regulatory approvals, including Chinese government approvals for the transfer of the relevant exploration license and requirements of the Toronto Stock Exchange.

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. Jinshan's shares are listed on the TSX under the symbol "JIN". Please visit our website at: www.jinshanmines.com

This press release contains forward-looking statements, including the completion of the sale of the Dadiangou Project. Forward-looking statements are based on a number of material factors and assumptions and involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include the ability to obtain necessary regulatory approvals and completion of payment by the purchaser under the purchase agreement, as well as those matters identified as risk factors in Jinshan's Annual Information Form and MD&A. Although Jinshan has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Jinshan does not assume any obligation to update forward-looking statements, except to the extent required by applicable securities laws.

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