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Jinshan Goldmines Acquires Option on New Gold and Copper-Gold Project in Yunnan Province, China


July 15, 2004
BEIJING, CHINAÂ- Jinshan Gold Mines announced today that it has signed a memorandum of understanding with the Yunnan Geology & Mineral Resources Co. Ltd. (YGMRC) that gives Jinshan the exclusive right to form a joint venture with YGMRC to explore for gold and copper-gold porphyry systems at and around YGMRC's Beiya Gold Mine in western Yunnan Province, China. The optioned land covers an area of 13 square kilometres. Jinshan also will have an option to earn into the existing Beiya underground mine. The joint venture is subject to Jinshan's due diligence which, is currently underway.

The Beiya Mine is YGMRC's premier gold operation. The Mine currently produces 300 tonnes/day at a head grade of 5.0 grams of gold per tonne from a limestone skarn/replacement ore body. The mine, approximately 90 kilometres northeast of Dali City, has good access, infrastructure and power.

"The project offers significant scope for the discovery of gold and porphyry copper-gold deposits. Only a small area around the current mine has been explored and there is good potential below the current mine workings and in the surrounding area," said Mike Page, Jinshan's Vice-President of Exploration. The Beiya opportunity is an example of Jinshan's China strategy of identifying under-capitalized opportunities in China that have the potential for a large scale deposit.

The details of the memorandum of understanding are as follows:
Jinshan has the right to earn up to 80% equity in discoveries on the land which has been optioned surrounding the Beiya Gold Mine and below the 1700-metre elevation (above sea level) of the Beiya Mine (approximately 100-200 metres below surface).
Jinshan has the option to acquire the controlling interest in the Beiya Mine after a three-year period.Â

Jinshan has begun a detailed due diligence of the project. Dr. Gregg Morrison of Klondike Exploration Services, Australia, will review geology and exploration data. Mr. John McDonald of McDonald Spiejers Consultants, Australia, will review resources and mining options. On-site milling will also be reviewed.

The Beiya joint venture is subject to Ivanhoe Mines' earn-in agreement as detailed in Jinshan's October 24, 2003, news release.

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

Jinshan is focused on the exploration and development of precious and base metals (gold, copper, nickel, and platinum group metals) in China and Mongolia. Jinshan's most advanced project is the 217 Gold Project in Inner Mongolia. The company is also conducting exploration work on prospective properties in Yunnan, Shandong, Liaoning, Guizhou and Inner Mongolia, in China. Jinshan shares are listed on the TSX Venture Exchange under the symbol JIN.

Investors: Bill Trenaman/ Media: Bob Williamson: +1.604.609.0598
Email: [email protected] Website: www.jinshanmines.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy or this release.

Forward-Looking Statements:ÂStatements in this release that are forward-looking statements, including the planned earn-in and exploration of the Beiya mineral project in China, 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.