Jinshan Agrees to US$40 Million Loan From China National Gold Group Corporation to Redeem Outstanding Promissory Notes

Jinshan Gold Mines to get loans from the China National Gold Group. Value of loans approved for U.S. $ 40 million. Loan facility must obtain approval from the Toronto Stock Exchange. The proceeds will be used by Jinshan Gold Mines to pay the bill draft which was published in December, 2006 valued at CDN $ 30 million and promissory notes issued in June, 2007 valued at CDN $ 12.5 million.

Conditions interest loans given to Jinshan Gold Mines to 6% per annum accrued interest payable quarterly. Loans due and paid in December, 2011.