Jinshan Gold Mines Inc.
TSX : JIN

Jinshan Gold Mines Inc.

June 22, 2009 09:09 ET

Jinshan Secures RMB 210 Million (US$31 Million) Credit Facility From China National Gold Group Corporation

BEIJING, CHINA--(Marketwire - June 22, 2009) - Jinshan Gold Mines Inc. (TSX:JIN) announces that its subsidiary, Inner Mongolia Pacific Mining Co. Ltd. ("IMP"), has secured a non-revolving Renminbi ("RMB") 210 million (US$31 million) credit facility ("Credit Facility") from China National Gold Group ("CNG"), Jinshan's significant shareholder. Rick Low, Jinshan's Vice President of Finance, said, "We are thankful to CNG as this further demonstrates their commitment to Jinshan by providing us with this low cost, unsecured and unhedged credit facility. In addition, CNG has previously assisted us with advance payments of RMB 140 million for future gold deliveries to CNG."

The Credit Facility will help fund the ongoing construction and completion of the crusher system and expansion of the processing capacity at Jinshan's Chang Shan Hao ("CSH") gold mine in China. The Credit Facility is unsecured and bears interest at 5.31% per annum. The Credit Facility matures on, and is repayable in full by, September 30, 2009, but the maturity date may be extended upon the agreement of IMP and CNG. IMP may draw down up to RMB 210 million during the term of the non-revolving Credit Facility. IMP has also agreed to pay to CNG RMB 2.8 Million as a fee in consideration for providing the loan, providing assistance in identifying replacement bank financing for the Credit Facility and for agreeing to act as a guarantor in any such replacement bank financing.

XD Jiang, Jinshan's Vice President Production and General Manager of IMP, said, "With this available funding, we are on schedule to complete the construction of the crusher system and are looking forward to bringing the crushers on line in the third quarter of this year. We have also started construction on the Phase II leach pad extension in early June"

Infrastructure for the crusher system is now 90% complete and installation of the crushers and related equipment have commenced. Initial testing of each of the crushers is scheduled to begin in mid-July 2009.

"As we continue with the expansion, we are encouraged to see our gold production improving with 5,400 ounces poured in April and 6,200 ounces poured in May," said Mr. Jiang.

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.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the progress of crusher installation and related facilities at the Chang Shan Hao gold mine 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. The company does not assume the obligation to update any forward-looking statement.

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