Jinshan Gold Mines Inc.

Jinshan Gold Mines Inc.

July 02, 2008 08:30 ET

Infill and Extension Drilling Resumes at Jinshan's Dadiangou Gold Project, China

VANCOUVER, BRITISH COLUBMIA--(Marketwire - July 2, 2008) - Jinshan Gold Mines Inc. (TSX:JIN) is pleased to report that diamond drilling has begun at its Dadiangou Gold Project in Gansu province, China. The Phase III drill program is designed to upgrade and expand resources within the Dadiangou Main Zone where Jinshan has identified an Inferred Resource of 778,000 ounces of gold (26.3Mt @ 0.92 g/t gold; see press release dated Jan. 31, 2008 and technical report dated February 1, 2008 filed on SEDAR). Drilling will also test approximately 800 metres along strike to the west of previous drilling where prospecting and trenching indicate the shear zone may continue.

In addition to the exploration activities at site this season, Jinshan is actively advancing the Dadiangou project towards a preliminary assessment study. Environmental, hydrogeological, metallurgical, and other studies are currently ongoing and will be used to support a preliminary assessment study. The Dadiangou Project is envisioned as a potential open-pit, cyanide-leach gold operation.

Drilling, trenching, and underground exploration completed to date has shown evidence that the Dadiangou Main Zone (DMZ) extends at least 3,170 metres in strike length, with typical widths of 50 to 60 metres over 2/3 of its strike length. Within this, gold grades can be highly variable and it is anticipated that detailed definition drilling may better define the distribution of higher-grade ore shoots within the lower-grade mineralized shear zone. Infill drilling at the DMZ will target areas of known higher-grade in order to better delineate the overall distribution and quantity of gold in the Dadiangou system.

The Dadiangou gold system is located in the central part of China in southern Gansu Province within the prolific Qinling Fold Belt. The license covers approximately 15 square kilometres and is owned by the Northwest Industrial Nuclear Economic Technical Corp. (part of the Shaanxi Nuclear Geology Bureau of China). The joint-venture agreement with the Northwest Industrial Nuclear Economic Technical Company (the Chinese partner) allows Jinshan to earn up to 80% by conducting property expenditures and making payments to the Chinese partner. The Chinese partner can participate at a 20% level for development and capital expenditures, or be diluted.

A rigorous quality assurance and quality control (QA/QC) protocol has been implemented at the Dadiangou Project to ensure that analytical results and data handling meet or exceed current industry best practices. Analytical standards, blank samples, and duplicate samples are included in the sample stream to ensure data integrity. All samples will be shipped to SGS in Xian for sample preparation and then to SGS-CSTC Laboratories in Tianjin, China (ISO 9001-2000 accredited) for gold fire assay. Howard Davies, M.Sc., M.A.I.G., a Jinshan employee, will direct onsite activities at the Dadiangou Project and Keith Patterson, M.Sc., P.Geo., Vice President of Exploration, will oversee all aspects of the current program. Both Mr. Davies and Mr. Patterson are "Qualified Persons" as defined by National Instrument 43-101. Mr. Patterson has supervised the preparation of scientific and technical information in respect of the Dadiangou Project in this news release.

About Jinshan

Jinshan is a Canadian mining company focused on gold production and acquisitions in China. The company began producing gold at the CSH Mine in July 2007 and is actively advancing its portfolio of gold exploration properties in China. Jinshan's shares are listed on the Toronto stock exchange under the symbol JIN. China National Gold, a Chinese state-owned enterprise and the largest gold producer in China owns approximately 42% of Jinshan's shares.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the planned drill targets, the planned total number of metres to drill, and the potential to grow Dadiangou into a bulk tonnage gold deposit, the completion of a preliminary assessment and the potential for the Dadiangou project to be an open-pit, cyanide leach gold operation 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. When used in this document, words such as "could", "planning", "estimate", "expect", "intend", "may", "potential", "should", and other similar expressions are forward looking statements. The company does not assume the obligation to update any forward-looking statement.

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