Jinshan Gold Mines Inc.

Jinshan Gold Mines Inc.

August 23, 2006 20:37 ET

Jinshan Appoints Vice President of Exploration

Company Obtains Two New Exploration Permits Covering Favourable Gold Targets in Xinjiang, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 23, 2006) - Jinshan Gold Mines Inc. (TSX VENTURE:JIN) is pleased to announce the appointment of Keith Patterson, M.Sc., P.Geo. as Vice President of Exploration.

Mr. Patterson brings more than 12 years of mineral exploration experience to the Jinshan team and will focus on advancing the company's China exploration projects. Over his career, Mr. Patterson has gained extensive international experience and has been involved with exploration projects ranging from grassroots through to development stage projects. Drawing on his experience with numerous deposit styles, Mr. Patterson will contribute towards the company's acquisition and growth strategy.

Mr. Patterson has been granted 200,000 stock options under the company's Equity Incentive Plan. The options are exercisable at C$1.28, will vest in stages over a two-year period and will expire on August 17, 2009.

Jinshan Announces Two New Exploration Permits In Xinjiang, China

Jinshan also is pleased to announce the approval by the Ministry of Land and Resources of two new exploration permits in the Xinjiang Province of North-western China. The two permits are in the prolific Tianshan mineral belt where Jinshan now holds a total of six exploration permits (see Jinshan's news release dated February 21, 2006), in addition to the company's flagship ChangShanHao (217) open-pit gold mine development project in Inner Mongolia, and the drill-ready Dadiangou gold property in Gansu province. The new permits, along with ongoing regional evaluations, demonstrate the company's commitment to generative exploration in the Tianshan and North China Gold Belts which are host to world-class deposits such as Muruntau and Kumtor.

The new permits cover high priority targets identified from regional conceptual target generation. The permits are held under a Sino-Foreign Joint Venture in which Jinshan holds a 99% share and its partner, Yunnan Geological and Mining Co. Ltd., holds a 1% share. The Jingerquan Xi permit has an area of 86.44 square kilometres and Hongshigang Dongbei permit has an area of 9.12 square kilometres. Both permits are valid for a period of three years, with a renewable term thereafter.

Several outcrop grab samples from a 551 sample reconnaissance geochemical program identified Jingerquan Xi as an area with anomalous gold concentrations. Gold analyses ranged from below detection limit to one sample with 8.23 grams per tonne from a quartz vein hosted by gabbro. The Hongshigang Dongbei permit is a conceptual target underlain by early Carboniferous metasediments and along the Kangguer structural break, which hosts the Kangguertag-Matoutan gold deposit. Detailed mapping, sampling and ground geophysics is planned to start on the new permits later this month. If the planned exploration is successful in outlining significant gold mineralization, a phase two drilling program would be planned and implemented as soon as it is practical.

To view the Jinshan property location map, click on the following link: http://www.ccnmatthews.com/docs/JINmap_loc.pdf

Qualified Persons and Sample QA/QC

Steven R McMullan, P.Geo., Jinshan Project Manager and a Qualified Person as defined by National Instrument 43-101, verified and supervised the preparation of the scientific and technical information in this release. All geochemical samples collected during the company's reconnaissance exploration programs are analyzed for gold, copper and nickel by SGS China in Tianjin. SGS uses international standard practice for quality assurance and quality control (QA/QC). CANMET Certified Reference Material was included in each sample batch submitted for analysis as control samples to monitor possible contamination.

About Jinshan

Jinshan is a Canadian mining company focused on the exploration and development of gold projects in Asia. The company is developing the CSH (217) Gold Project and conducting exploration work on other prospective properties in China.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the anticipated date of commencement of the further exploration work on the areas covered by the two new permits is 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 Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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