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First Gold Pour Expected In August

VANCOUVER, CANADA -- Jinshan Gold Mines is pleased to announce that it has begun pilot-scale leaching of gold from approximately 100,000 tonnes of mineralized material placed on the leach pads during last year's trial-mining program at the CSH 217 gold development project, Inner Mongolia, China.

Jinshan and Ivanhoe Mines (IVN: NYSE & TSX) are jointly developing the CSH 217 Project on a 50/50 basis. The two companies have established a Management Committee to review the on-going work programs.

The pilot project is a major step in advancing feasibility studies and permitting directed towards the commencement of full-scale mining. Initial commercial production at the CSH 217 Project is envisioned at a rate of approximately 100,000 ounces per year. If successful, such a rate would make the CSH 217 Project one of the largest producing gold mines in China. Detailed engineering designs, large-scale column testing, hydrological studies, permit applications and environmental baseline studies also are expected to be completed by the end of 2005 or early 2006.

Two pilot-scale heap-leach pads, each containing approximately 50,000 tonnes of mineralized material, have been prepared for leaching with installation of piping and solution drip emitters. Leaching of the 50,000-tonne, run-of-mine (ROM) heap-leach pad commenced this week. Leaching of the 50,000-tonne, single-stage crushed leach-pad is expected to commence in mid-June. The first doré gold bar is expected to be poured in August.