China Gold estimates Jiama NPV at $1.2-billion (U.S.)

Dr. Xin Song reports

CHINA GOLD INTERNATIONAL ANNOUNCES PRE-FEASIBILITY STUDY FOR EXPANSION OF THE JIAMA PROJECT WITH IRR OF 53.7% AND PROJECT UPDATE

China Gold International Resources Corp. Ltd. has released the results of an updated National Instrument 43-101-compliant independent prefeasibility study for the phase two expansion of its Jiama copper-polymetallic mine in Tibet, China. The Pre-Feasibility Study was completed by Minarco-MineConsult (MMC), part of the Runge Limited Group of Companies, in conjunction with independent consulting engineers and management.(All amounts in US dollars unless otherwise stated)

Highlights

-Copper (Cu) Measured and Indicated Mineral Resources increased to 10.2 billion pounds of metal at 0.44% Cu; -Copper Proved and Probable Mineral Reserves Increased to 6.2 billion pounds of metal at 0.77% Cu; -Production from open-pit and underground operations is expected to produce 6.3 million tonnes and 6 million tonnes (Mt) of run-of-mine ("ROM") ore per annum respectively; -Ramp up to an annual processing capacity of 12.3 Mt of ROM ore, over a 31 year period, producing approximately: -176 million pounds of copper per annum -35 thousand ounces of gold (Au) per annum -2.7 million ounces of silver (Ag) per annum -2.3 thousand tonnes of molybdenum (Mo) per annum -Estimated capital expenditures of $705 million; -After-tax Net Present Value (NPV) of $1.2 billion with a discount rate of 9% at metal price assumptions of: $2.90/lb Cu, $18/lb Mo, $1,380/oz Au, $16.5/oz Ag -After-tax Internal Rate of Return (IRR) of 53.7% and payback period of 4.5 years -Pre-tax NPV of $1.5 billion with IRR of 60.4%; -Life of Mine (LOM) projected average cash cost $1.76/lb Cu equivalent, or $1.52/lb Cu with other metals credited; -Average annual net cash flow of $120 million for 31 year LOM; -Contribution of Cu, Mo, Au and Ag to gross revenues are 75%, 11%, 7% and 6% respectively. Lead (Pb) and Zinc (Zn) contributes less than 1% of overall revenue; and -Undiscounted, cumulative net cash flow, is approximately $3.8 billion