Jinshan Gold Mines Inc.
TSX : JIN

Jinshan Gold Mines Inc.

December 13, 2006 07:00 ET

Jinshan Granted Four New Exploration Permits Along Tianshan Mineral Belt, China

Phase I Sampling and Geophysical Surveys Complete at Six Current Permits

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 13, 2006) - Jinshan Gold Mines Inc. (TSX:JIN) is pleased to announce the approval of four new exploration permits along the prolific Tianshan mineral belt in Xinjiang Province, Northwestern China. Jinshan now holds ten exploration permits totaling 335 square kilometres within the Tianshan belt and is conducting a methodical program of grass-roots exploration designed to target large-scale, bulk-mineable gold deposits in this prolific, yet under-explored, region.

"The Tianshan gold belt is becoming a focus for both major and junior exploration companies in the search for large, bulk-mineable gold deposits in China," said Jinshan's Vice President of Exploration, Keith Patterson. "Jinshan's existing infrastructure, property portfolio and exploration personnel give us a head start in this exciting district."

In addition, Jinshan exploration crews have now completed significant reconnaissance exploration work at its six existing exploration permits in the area with results expected shortly. In total, approximately 4,000 rock, soil and stream sediment samples have been collected, more than 150 square kilometres have been covered with ground magnetic geophysical surveys, and all six permits have been geologically mapped and prospected. Based on the results to date, the company has delineated several new gold targets and is planning detailed follow-up work to begin in the spring of 2007.

Four New Permits Granted

Three of the newly granted exploration permits form a contiguous block totaling 86.2 square kilometres at the Changsheng property. The permits cover an area underlain by intercalated carbonaceous shales and volcanic rocks that have been intruded by granitoids. Regional debris sampling has defined several gold anomalies within the area and limited quartz vein sampling by Jinshan geologists has returned values from below detection to 4.6 grams per tonne (g/t) gold. Several large-scale structures are interpreted on or near the Changsheng permits. Carbonaceous shales in close proximity to intrusive granitoids host some of the largest gold deposits known in the Tianshan mineral belt, such as the giant Muruntau deposit in Uzbekistan.

The fourth new exploration permit, named the Xingou property, covers 36.7 square kilometres in the West Tianshan mineral belt. The area is underlain by silicified and stockwork quartz veined sandstones intruded by a granitic stock. One composite grab sample of stockwork quartz veins collected by Jinshan geologists returned 8.35 g/t gold. Several small-scale underground workings have previously exploited larger veins within the stockwork. Jinshan geologists consider the entire stockwork to have potential as a bulk-mineable gold target.

The four new permits are held under a Sino-Foreign Joint Venture in which Jinshan holds a 99% share and the Yunnan Geological and Mining Co. Ltd. holds a 1% share. These permits are the result of an ongoing program of reconnaissance exploration and evaluations in the Tianshan region by Jinshan's exploration personnel.

Jinshan Property Location Map

To view the map accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/Jinshan2.jpg

Phase I Exploration Complete at Six Permits

Exploration conducted at Jinshan's permits in the East Tianshan belt has resulted in the delineation of numerous gold targets. Two high-priority targets have been identified at the Kumutage Dong Permit (43.4 square kilometres). The first consists of apparently strata-bound gold-copper mineralization hosted by a rhyolite tuff unit that has been mapped over three kilometres strike length on the permit. Due to limited exposure, the true width of this unit is not yet known. Three rock grab samples that were previously collected from this mineralization style along a 100-metre trend within the tuff unit returned gold assays ranging from 5.94 to 27.4 g/t. A program of talus-fines sampling has been completed covering the entire strike length of the rhyolite tuff unit. A total of 646 samples were collected and results are expected shortly.

The second target at Kumutage Dong lies in an area characterized by abundant quartz sub-crop, but little to no outcrop. A ground magnetic survey covering 29 square kilometres of the project area defines a regional-scale structure which in this area is deflected into an interpreted "dilational jog". While conceptual in nature, this target has the size and geological characteristics suggesting the potential for a significant gold deposit.

At the 86.4-square-kilometre Jingerquan Xi permit, a ground magnetic survey has been completed covering the entire project area. A total of 520 talus fines samples have been collected in the northwest portion of the permit where a mineralized quartz-bearing structure has been mapped. Thirteen previous samples of quartz along a 1.3-kilometre trend in the northwest portion of the permit returned grades from 0.1 to 17.8 g/t gold (including 0.94 g/t Au, 1.08 g/t Au, 4.34 g/t Au, 8.23 g/t Au, and 17.8 g/t Au). Jinshan is currently reviewing the magnetic data and will incorporate this with the results from talus fines sampling to delineate targets to be trenched, once all results are received.

At the Kongqueshan (38.9 square kilometres), Dananhu Nan (53.8 square kilometres) and Hongshigang Dongbei (9.1 square kilometres) permits, large programs of rock, talus fines, and stream sediment sampling have been completed. In total, 615 samples have been collected from the Kongqueshan permit, 646 from the Dananhu Nan permit, and 460 from the Hongshigang Dongbei permit. Results of this sampling are expected shortly. Highlights and interpretation will be released once the data has been compiled and reviewed by Jinshan's geologists.

Note that the potential quantity and grade of the above-mentioned targets is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in any of such targets being delineated as a mineral resource.

Qualified Person

Keith Patterson, M.Sc., P.Geo., a Qualified Person as defined by National Instrument 43-101, has supervised the preparation of technical information in this release and will oversee all aspects of the planned exploration at Jinshan's Tianshan projects.

About Jinshan

Jinshan is a Canadian mining company focused on the development of the CSH 217 gold mine where commercial production is expected to begin in the second quarter of 2007. In addition, the company is actively exploring its portfolio of high-quality gold exploration properties and continues to evaluate additional gold opportunities in China.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the commencement time and scope of planned exploration programs and Jinshan's planned review of the Tianshan region 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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