Jinshan Gold Mines Inc.

Jinshan Gold Mines Inc.

November 09, 2005 16:45 ET

Jinshan Announces Financing of C$12 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 9, 2005) -


Jinshan Gold Mines Inc. (TSX VENTURE:JIN) announced today that it has entered into an agreement with a syndicate of three agents, led by Dundee Securities Corporation and including Haywood Securities Inc. and Salman Partners Inc., to undertake a private placement of up to 24,000,000 Units at a price of $0.50 per Unit to raise up to C$12 million.

Each Unit will consist of one common share and one half of a common share purchase warrant. Each whole common share purchase warrant will be exercisable at a price of C$0.70 for a period of 18 months from closing. The securities to be issued in this financing will be subject to a four month hold period. The offering is on a best efforts basis. The net proceeds of the private placement will be used to further the development of Jinshan's gold mining projects in China, including the CSH 217 gold project, and for general corporate purposes.

The agents will be paid a cash fee of 6% of the gross proceeds raised in the offering. In addition, the agents will receive broker warrants exercisable for common shares, at a price of C$0.60 for 18 months after the closing date, equal to 6% of the number of Units sold under the offering.

The financing is subject to, among other things, regulatory approval and the successful completion of the announced transaction with Ivanhoe Mines Ltd.

These securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

Jinshan is a Canadian mining company focused on the exploration and development of gold and copper projects in Asia. The company is advancing one of the largest gold development projects in China - the CSH 217 Gold Project - and conducting exploration work on other prospective properties in China.

Jinshan shares are listed on the TSX Venture Exchange under the symbol JIN.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the ongoing and planned exploration and development work at the CSH 217 Gold Project are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information