Sino Vanadium Inc.
TSX VENTURE : SVX

Sino Vanadium Inc.

October 05, 2010 09:51 ET

Sino Vanadium Successfully Extends Its Registered Capital Requirement

TORONTO, ONTARIO AND XIAN, CHINA--(Marketwire - Oct. 5, 2010) - The Board of Sino Vanadium Inc. (TSX VENTURE:SVX), a late-stage vanadium pentoxide (V205) play, announced today that it has been successful in obtaining an extension from the applicable Chinese governmental authority for meeting the registered capital requirement of its wholly owned subsidiary, Shaanxi Wellkan Resources Limited ("Shaanxi Wellkan"). Under the extension granted, Shaanxi Wellkan does not need to meet its registered capital requirement until October 21, 2011.

The People's Republic of China (PRC) Ministry of Commerce requires certain registered capital requirements to be met by certain deadlines. These requirements are company specific, but are commonly applied in China to ensure companies operating there are properly capitalized. Currently, Shaanxi Wellkan has fully paid up registered capital requirements totaling RMB 27,356,700. Shaanxi Wellkan was required to have fully paid up registered capital of RMB 120,000,000 (approximately $21.5 million) by October 21, 2010; this deadline has now been extended to October 21, 2011.

Further information about the registered capital requirement and its impact on the Corporation can be found in the Corporation's annual information form, dated June 18, 2010, and available on SEDAR (www.sedar.com).

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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