Jinshan Gold Mines Inc.
TSX : JIN

Jinshan Gold Mines Inc.

November 27, 2006 08:30 ET

Jinshan Announces Note Offering of Up to C$30 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 27, 2006) - Jinshan Gold Mines Inc. (TSX:JIN) announced today that it has engaged Haywood Securities Inc. to act as agent for a C$30 million private placement offering of notes and warrants. The proceeds will be used to fund Jinshan's corporate needs including capital expenditures and working capital.

The offering will consist of up to 30,000 Units, each consisting of one promissory note and 200 transferable share purchase warrants. Each note will have a par value of C$1,000 and will pay a 12% coupon per annum, paid quarterly for a period of three years. Each warrant will be exercisable into one common share for a period of twenty-four months from the date of closing and have an exercise price of C$1.60 per share. Jinshan will have the right to accelerate the expiry date of the warrants after eighteen months if its shares trade at or above the volume weighted average share price of C$2.75 for 20 consecutive trading days. The notes mature and are re-payable after three years. Jinshan can elect to prepay the notes after 18 months with no penalty.

The agent will be paid a cash fee of 4% of the gross proceeds raised in the offering, plus a C$50,000 working fee. The private placement is subject to regulatory approval. The offering is expected to close on or about December 12, 2006.

About Jinshan

Jinshan is a Canadian mining company focused on the exploration and development of gold projects in Asia. The company is developing the Chang Shan Hao (CSH 217) open-pit gold mine project and conducting exploration work on other prospective properties in China.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including those relating to the development work at the CSH 217 project 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.


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

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