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VANCOUVER, CANADA -- Jinshan Gold Mines is pleased to announce that it has now earned a 96.5% interest in the Chang Shan Hao (CSH 217) Gold Development Project in Inner Mongolia, China. The company is currently conducting engineering and metallurgical testing to determine optimal open-pit mining scenarios and advance its mine engineering studies towards a bulk-tonnage, low-grade, heap-leach gold mining operation (see Jinshan's April 19, 2005, news release for more information on the new, independent resource estimate at CSH 217).

Jinshan completed its earn-in by making total payments of US$750,000 to its Chinese partner, Ningxia Nuclear Industry Geological Exploration Institute. Ningxia retains a 3.5% carried interest in the project. Jinshan is still required to make two US$1 million payments to its Chinese partner upon achieving certain milestones related to mine construction and commercial production. Ivanhoe Mines has the right to participate in Jinshan's interest in the project on a 50/50 basis.

In late 2004, open-pit pilot mining was initiated at the CSH 217 Gold Project. The operation produced approximately 100,000 tonnes of oxidized mineralization for heap-leach / bulk-tonnage trials. The trial heap-leach pads, water supply facilities and carbon columns are currently being prepared to commence leaching trials. Soaking of the leach pads is expected to commence in May and trial leaching is expected to commence in late May or early June. Assuming successful trial leaching, it is anticipated that the first gold bars will be poured in August 2005. 

Jinshan is advancing its mine engineering studies and Government permitting concurrently, in an effort to accelerate a commercial production decision. It is expected that a decision can be made once conclusive results are received from the trial leaching, further metallurgical and engineering studies are complete, and all necessary permits are received. 

Other development activities on the project include the completion of a 300-metre-long access tunnel and an adjoining cross-cut tunnel reaching a depth of 90 metres below surface to obtain a composite bulk sample of the sulphide mineralization. The bulk sample has been shipped to the city of Baotou, China, for leach testing. Channel sampling of the cross-cut tunnel also is in progress to help determine bulk gold grades. Large-diameter, column-leach testing on oxidized material is nearly complete, and large-diameter column-leach testing on sulphide material has now commenced. The metallurgical testing is being conducted under the supervision of heap-leach specialists KD Engineering Co., Inc. of Tuscon, Arizona, USA. KD Engineering was instrumental in engineering the leaching facilities at Ivanhoe Mines' Monywa Copper Mine in Myanmar, which is now considered to be one of the lowest-cost primary copper producers in the world. 

Jim Lincoln, a consulting geologist and a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.

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 of this release.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the ongoing development, engineering and permitting work at the CSH 217 Project 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.