Jinshan Gold Mines Inc.

Jinshan Gold Mines Inc.

May 31, 2005 08:00 ET

Jinshan Commences Pilot Leaching of Gold at the CSH 217 Development Project, China; First Gold Pour Expected in August

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2005) - Jinshan Gold Mines Inc. (TSX VENTURE:JIN) is pleased to announce that it has begun pilot-scale leaching of gold from approximately 100,000 tonnes of mineralized material placed on the leach pads during last year's trial-mining program at the CSH 217 gold development project, Inner Mongolia, China.

Jinshan and Ivanhoe Mines (TSX:IVN)(NYSE:IVN) are jointly developing the CSH 217 Project on a 50/50 basis. The two companies have established a Management Committee to review the on-going work programs.

The pilot project is a major step in advancing feasibility studies and permitting directed towards the commencement of full-scale mining. Initial commercial production at the CSH 217 Project is envisioned at a rate of approximately 100,000 ounces per year. If successful, such a rate would make the CSH 217 Project one of the largest producing gold mines in China. Detailed engineering designs, large-scale column testing, hydrological studies, permit applications and environmental baseline studies also are expected to be completed by the end of 2005 or early 2006.

Two pilot-scale heap-leach pads, each containing approximately 50,000 tonnes of mineralized material, have been prepared for leaching with installation of piping and solution drip emitters. Leaching of the 50,000-tonne, run-of-mine (ROM) heap-leach pad commenced this week. Leaching of the 50,000-tonne, single-stage crushed leach-pad is expected to commence in mid-June. The first dore gold bar is expected to be poured in August.

Bulk-column metallurgical leach testing of both oxide and sulphide material is underway in Baotou, Inner Mongolia. The tests have been designed and supervised by heap-leach specialists KD Engineering Inc. of Tuscon, Arizona. Fourteen columns comprising more than 18 tonnes of mineralized material have been prepared to determine the optimal size for the maximum economic extraction of gold. Oxide columns have been leaching for more than 80 days and sulphide columns for more than 35 days. Final results of the gold-leach recovery, reagent consumption and calculated head grade are expected in August for the oxide material and in October for the sulphide material.

The preliminary open-pit mine plan for the full-scale, commercial operation and mine development scheduling has been completed. Detailed engineering in conjunction with pre-feasibility studies is being coordinated by KD Engineering in cooperation with Golder & Associates and the Beijing General Research Institute for Mining and Metallurgy (BGRIMM). Golder & Associates is designing the heap-leach pads and BGRIMM is designing and coordinating the project infrastructure and the Chinese feasibility studies required for permitting.

Baseline environmental studies at the mine development site have been completed and the final Environmental Impact Assessment reports are anticipated in June. In addition, Environmental and Social Impact (ESIA) and Soil and Water Conservation studies have been commissioned. The ESIA studies are being prepared to meet both Chinese and international environmental guidelines. The studies are being carried out under the direction of Environmental Resource Management (ERM) of Shanghai, an internationally recognized consulting firm.

Numerous permits have been submitted for approval and technical review. Overall, the comprehensive permitting process is advancing with Project Registration approvals expected by this summer and a Mining Lease permit expected by the end of 2005 or early 2006.

Jim Lincoln, a qualified person as defined by National Instrument 43-101, supervised the preparation of the information in this release.

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 development, engineering and permitting work at the CSH 217 Project, including the expected date of the first gold pour, 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.

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