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Jinshan Gold Mines Inc. is pleased to announce that it has executed a memorandum of understanding with China National Gold Corporation and another partner to acquire a 100% interest in the Jiama property. The Jiama property is a significant polymetallic deposit consisting of copper, molybdenum, gold, silver and other minerals. The parties will now commence the negotiation and preparation of definitive agreements regarding the purchase and sale of the property. As the acquisition will be a related party transaction under Canadian securities laws, Jinshan has established a special committee of independent directors to review the transaction. The Company has also commenced the process of preparing a NI 43-101 independent technical report and an independent valuation of the property. The valuation is expected to form the basis of a fairness opinion to be received by the special committee in completing its assessment of the transaction and negotiation of the acquisition price. If definitive agreements are concluded, completion of the transaction is anticipated to be subject to the approval of Jinshan’s shareholders and the TSX, as well as customary conditions to closing.

The Jiama property is currently in the development stage, and the current owners have nearly completed construction of a first stage of mining and processing infrastructure that establishes an underground mining operation with a production capacity of 6,000 tonnes per day. The operation will produce a copper concentrate with gold and silver credits and a molybdenum concentrate. The property owners have also obtained relevant permits for initial mining operations on the property. Reserve and resource estimates on the property are being converted to CIM standards in connection with the upcoming NI 43-101 technical report on the property, which is scheduled to be completed in the fourth quarter of 2009.

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