Sino Vanadium Inc.
TSX VENTURE : SVX

Sino Vanadium Inc.

September 30, 2009 12:56 ET

Sino Vanadium Inc Announces Update Regarding Daquan Property Mineral Resource Estimate Based on the 2009 Drilling Program

TORONTO, ONTARIO & HONG KONG, PEOPLES REPUBLIC OF CHINA--(Marketwire - Sept. 30, 2009) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Sino Vanadium Inc. (the "Corporation") (TSX VENTURE:SVX) is pleased to announce the results of an updated Technical Report (the "Report") regarding its 100% owned Daquan Vanadium Property (the "Property") which was prepared by Wardrop Engineering Inc. ("Wardrop") located in Beijing, China. The Report updates a previous technical report on the Property prepared by Wardrop dated April 8, 2009 which was completed prior to receipt of results from the 2009 drilling program. The updated National Instrument ("NI") 43-101 compliant Report incorporates the results of the 2009 drilling program and will be filed on SEDAR within 45 days of this news release.

Highlights of the Report

- Increase in average grade of indicated resources to 0.95% V2O5 from the previously (April 2009) reported grade of 0.80% V2O5.

- Estimated indicated resource increased to 15.8 million tonnes from the previous estimate of 13.5 million tonnes.

- Increase in average grade of inferred resources to 0.92% V2O5 from the previously (April 2009) reported grade of 0.76% V2O5.

- Estimated inferred resource increased to 18.4 million tonnes from the previous estimate of 8.8 million tonnes.

- V2O5 present absorbed into clay particles and is both extensive and homogeneous

- Cut-off grade of 0.25% V2O5 deemed economic by Wardrop on the basis of mining and production costs in similar operations in the area of the Property, and on the trailing three-year price of vanadium pentoxide.

Mr. Ma, Chairman of the Corporation, said: "We are pleased that our drilling program has continued to show the expanding scope of the Daquan property. Clearly this report shows that this deposit is world-class and continues to be high grade as we work to define the extent and nature of the deposit. Management calculations indicate that, based on a cut off grade of 0.25%, the latest updated indicated resources presented in the report translate into approximately 330 million lbs of V2O5 while the latest updated inferred resources presented in the report translate into approximately 370 million lbs of V2O5."

The 2009 drilling program was comprised of 12 holes with an aggregate length of 3620 meters. The holes were intended to test the vanadium bearing zone throughout the strike length that had previously been tested by trenching and tunnelling. In addition, 111 V2O5 assays were added to the existing database of 555 assays previously obtained. One of Wardrop's conclusions in the Report speaks to the volume of information that has been considered in this study of this Property:

". . . the distribution of vanadium is both extensive and relatively homogeneous, and can be reasonably presumed to be significantly more extensive than the volume of rock for which the resource has been estimated."



Resource Estimates of the Daquan Property Inverse Distance Squared ("ID2")
and Nearest Neighbour ("ID5 ") Methods

DAQUAN ID2 VANADIUM UNIT

----------------------------------------------------------------------------
THRESHOLD V2O5% INDICATED TONNES V2O5%
----------------------------------------------------------------------------
2.00 400,346 2.45
----------------------------------------------------------------------------
1.75 779,098 2.17
----------------------------------------------------------------------------
1.50 1,464,215 1.90
----------------------------------------------------------------------------
1.25 3,137,224 1.62
----------------------------------------------------------------------------
1.00 5,346,249 1.41
----------------------------------------------------------------------------
0.75 9,969,529 1.15
----------------------------------------------------------------------------
0.50 14,773,531 0.99
----------------------------------------------------------------------------
0.25 15,836,880 0.95
----------------------------------------------------------------------------
0.10 15,964,364 0.94
----------------------------------------------------------------------------


----------------------------------------------------------------------------
THRESHOLD V2O5% INFERRED TONNES V2O5%
----------------------------------------------------------------------------
2.00 74,064 2.32
----------------------------------------------------------------------------
1.75 193,239 2.02
----------------------------------------------------------------------------
1.50 498,730 1.77
----------------------------------------------------------------------------
1.25 1,477,310 1.49
----------------------------------------------------------------------------
1.00 5,513,316 1.20
----------------------------------------------------------------------------
0.75 14,209,109 1.00
----------------------------------------------------------------------------
0.50 17,883,200 0.93
----------------------------------------------------------------------------
0.25 18,351,090 0.92
----------------------------------------------------------------------------
0.10 18,512,602 0.91
----------------------------------------------------------------------------


DAQUAN ID5 VANADIUM UNIT

----------------------------------------------------------------------------
THRESHOLD V2O5% INDICATED TONNES V2O5%
----------------------------------------------------------------------------
2.00 615,806 2.55
----------------------------------------------------------------------------
1.75 1,046,759 2.27
----------------------------------------------------------------------------
1.50 1,990,819 1.95
----------------------------------------------------------------------------
1.25 3,327,824 1.72
----------------------------------------------------------------------------
1.00 5,255,732 1.50
----------------------------------------------------------------------------
0.75 9,448,700 1.21
----------------------------------------------------------------------------
0.50 14,724,288 1.00
----------------------------------------------------------------------------
0.25 15,698,490 0.97
----------------------------------------------------------------------------
0.10 15,946,818 0.95
----------------------------------------------------------------------------


----------------------------------------------------------------------------
THRESHOLD V2O5% INFERRED TONNES V2O5%
----------------------------------------------------------------------------
2.00 298,553 2.38
----------------------------------------------------------------------------
1.75 637,759 2.10
----------------------------------------------------------------------------
1.50 1,424,076 1.83
----------------------------------------------------------------------------
1.25 2,895,822 1.59
----------------------------------------------------------------------------
1.00 5,697,038 1.36
----------------------------------------------------------------------------
0.75 12,507,144 1.08
----------------------------------------------------------------------------
0.50 17,237,041 0.96
----------------------------------------------------------------------------
0.25 18,001,608 0.94
----------------------------------------------------------------------------
0.10 18,390,301 0.92
----------------------------------------------------------------------------


As a result of the 2009 drilling the tonnes of Indicated resource have increased 18% from the April 2009 estimate and the grade has increased by 19%. The tonnage of the Inferred resource has increased 210% and the grade has increased 20% from the April 2009 estimate.

Mineral Resource Estimates

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for minability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated mineral resource categories through further drilling, or into mineral reserves once economic considerations are applied.

Technical Report by Wardrop and Qualified Persons

An updated NI 43-101 Technical Report by Wardrop will be posted on www.sedar.com within 45 days. The forthcoming NI 43-101 report is prepared by Greg Z. Mosher, Senior Geologist, Wardrop Engineering Inc. as was the April 2009 Technical Report. Mr. Mosher, who is a qualified person in the context of NI 43-101, has reviewed and verified the scientific and technical mining disclosure contained in this news release on behalf of the Corporation.

About Sino Vanadium

The Corporation owns 100% of the Daquan property in Shaanxi province, China. The property contains a world class Vanadium deposit that management first recognized in 2007. The Corporation is working towards commissioning a pre-feasibility study on the Property in the 4th quarter of 2009. In the near-term the Corporation is reviewing potential acquisitions of additional Vanadium exploration and development properties. The Corporation's objective is to create shareholder value through the consolidation of Vanadium development and production in China and internationally. For further information, please visit www.sinovanadium.com.

This release may contain forward looking statements within the meaning of the "safe harbor" provisions of US laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. The Corporation does not assume any obligation to update any forward looking information contained in this news release.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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