Inner Mongolia Pacific Mining Co., a cooperative joint venture company controlled by China Gold International Resources (HKG:2099) (China Gold), has entered into the Geological Exploration Technical Service Contract with Beijing Jinyou Geological Surveillance Company Limited for the provision of geological exploration technical services by Beijing Jinyou for Inner Mongolia Pacific in the Haoyaoerhudong area of the CSH Gold Mine at a service fee of RMB6.47 million.

China National Gold Group Corporation holds 39.33% interest in China Gold and 100% interest in Beijing Jinyou.

China Gold has also confirmed that the Jiama Mine, located in the Tibet Autonomous Region in China, is now connected to the recently completed DC Qinghai-Tibet Power Grid Interconnection Project (QTPGI). With the completion of the QTPGI, a 2,530 km-long, 400 kV transmission line will now provide sufficient electrical power for the present requirements to operate the Jiama Mine as well as any future requirements resulting from the current Phase II expansion studies underway. Securing the present and future electrical energy supply for Jiama enables China Gold to invest in and grow our operations, and reduce its operating costs.

Copper production for 2011 is estimated to reach 9,500 tonnes with some gold and silver. China Gold is currently conducting its Phase II production expansion plan from its current ore processing capacity of 6,000 tonnes per day.