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Jinshan Receives Key Mining Permit for CSH '217' Gold Mine Stage Set for Commercial Production in Early 2007

Posted on: Tuesday, 12 September 2006, 09:00 CDT

Jinshan Gold Mines Inc. (TSX VENTURE: JIN) is pleased to announce that it has received the Mining Permit for its CSH (217) gold mine in China. The permit was granted by the Ministry of Land and Resources in Beijing.

"Our team has been working very closely with the regulatory authorities and multiple levels of government towards this day," said Jinshan's Vice President, XiangDong Jiang. "It is an extensive process to obtain the mining permit, but the various governments have shown their support for our project."

Jinshan has been advancing construction and permitting over the past year to meet a gold production start-up target date of early 2007. Construction has been on-going through the summer months and the ore pads and process plant facility are proceeding as planned. It is anticipated that the CSH (217) gold mine - estimated to be China's fourth largest gold mine - will pour its first commercial bar of gold in the spring of 2007.

"With the commencement of mining in the months ahead, Jinshan will now graduate from an exploration company to one of the pre-eminent gold mining companies in China," said Jinshan's President, Jay Chmelauskas. "The road to production sets the stage for us to realize our strategy to generate cash flow and to continue to grow the company."

The independent resource estimate for the project, based on a 0.5 g/t gold cut-off, is 110 million tonnes of Measured and Indicated resources grading 0.83 g/t gold, containing 2.9 million ounces of gold (42 million tonnes of Measured resources grading 0.85 g/t gold and 68 million tonnes of Indicated resources grading 0.81 g/t gold). The project also contains inferred resources of 18 million tonnes grading 0.78 g/t, containing an additional 460,000 ounces gold. The estimate was calculated April, 2006 by Mario E. Rossi, MSc., Min Eng., of GeoSystems International Inc., Florida, USA. Mr. Rossi is an independent qualified person for the purposes of National Instrument 43-101.

The final feasibility study for the CSH 217 mine indicates that the mine would be capable of producing approximately 117,000 ounces of gold per year for an initial mine life of approximately nine years at an average cash cost of approximately US$253 per ounce. The study was prepared by Joseph Keane of KD Engineering of Tucson, Arizona. Mr. Keane is an independent qualified person for the purposes of National Instrument 43-101. See Jinshan's Annual Information Form dated July 10, 2006 for additional information regarding the resource estimate and the feasibility study for the CSH 217 project. A copy of the technical reports summarizing the resource estimate and the feasibility study are also available on SEDAR.

About Jinshan

Jinshan Gold Mines Inc. is a Canadian mining company focused on the exploration and development of gold projects in Asia. The company is developing the Chang Shan Hao (CSH 217) open-pit gold mine project and conducting exploration work on other prospective properties in China.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including those relating to the development work and the date of commencement of production 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 MD&A, financial statements and other 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.

To view Construction of Gold Process Plant picture, please click on the following link: http://www.ccnmatthews.com/docs/jin0912.jpg

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

 Contacts: Jinshan Gold Mines Inc. Deanna Kress Investors (604) 609-0598  Jinshan Gold Mines Inc. Bob Williamson Media (604) 609-0598 info@jinshanmines.comwww.jinshanmines.com

SOURCE: Jinshan Gold Mines Inc.

Source: MARKET WIRE

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