Sino Vanadium Inc.
TSX VENTURE : SVX

Sino Vanadium Inc.

July 09, 2010 11:37 ET

Sino Vanadium Provides Update on Progress of 100%-Owned Daquan Project

TORONTO, ONTARIO AND XIAN, CHINA--(Marketwire - July 9, 2010) - The Board of Sino Vanadium Inc. (TSX VENTURE:SVX), a late-stage vanadium play focused on the production of vanadium pentoxide (V205), today provided an update on certain Chinese regulatory matters related to their 100%-owned Daquan project near Xian in China.

In advance of completion of the feasibility study for the project, management has determined to take the necessary steps to update certain mining and construction permits for the project, as currently laid out in the NI 43-101-compliant Preliminary Economic Assessment (PEA) filed on SEDAR (www.sedar.com) on June 28, 2010.

To this end, management is proceeding with the necessary applications to Chinese government authorities to amend the Daquan Project mining license, valid to July 2, 2030, to include both open-pit and underground mining, as recommended in the PEA. While there is no assurance, management anticipates that all necessary approvals will be received within the time frames currently being considered for commencement of mining operations, being the second quarter of 2012.

In addition, the construction permit for the Project, which was due to expire in September, 2010, has been extended to December 31, 2011. The feasibility study is expected to confirm the construction schedule, which is currently aiming for completion in the second quarter of 2012. While there is no assurance, management anticipates that any further extension approvals will be received to permit the timely completion of construction.

"Obtaining the required approvals is a time-consuming and complex process, in our considerable experience ," said LIU Binqqiang, CEO of Sino Vanadium. "Given our strong Chinese presence and solid legal support, we see securing the extension of the construction license as supporting our preparation for the feasibility study record of compliance."

Enrique Lopez de Mesa, President and COO of Sino Vanadium, said, "The Sino Vanadium team members have been focused on ensuring that all elements are aligned for the successful implementation of the next stage of our mining project. We are very pleased at the speed with which our plans are being advanced."

About Sino Vanadium
The Company owns 100% of the Daquan property in Shaanxi province, China. The property contains a world-class vanadium deposit in an indicated resource of 330mm lbs. (15.9M t) at an average grade of 0.95% and an inferred resource of 370mm lbs. (18.7M t) at an average grade of 0.92% of vanadium pentoxide (V2O5) with a 10% NPV of $878,318,000, as per its NI 43-101-compliant report, available on SEDAR (www.sedar.com). Mineral resources that are not mineral reserves have no demonstrated economic viability. China is the world's largest single consumer of vanadium, which it uses primarily for high-strength steel and titanium alloys. Sino Vanadium also sees strong future potential in the growth of the high-energy, high-power, extra-long-life battery industry. The Company's objective is to create shareholder value through the consolidation of vanadium development and production. For further information, please visit www.sinovanadium.com.

Forward-Looking Statements
This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral resources, the realization of estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, and potential acquisitions.

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