The first round of metallurgical test results from Dynasty Gold"s Qi-2 gold deposit in the Hatu Project in China is showing high grade sample recoveries of an average 66.9%.

The metallurgy of the Qi-2 area is variable. Two preliminary samples taken during 2005 indicated the presence of refractory ore with recoveries of less than 50% as well as non-refractory ore with recoveries of 95%.

The latest tests have shown that in the high grade samples, recovery was an average of 66.9%, in medium grade it was 39.2% and in low grade it was 23.2%.

Initial evaluation of the metallurgy was completed by creating three composite samples from the reverse circulation drilled cuttings. A total of samples were collected from across the deposit, each weighing about 2.5kg. They were then split into three samples based on grade to make up the three composite samples of low, medium and high grade.

Diagnostic leach yests were undertaken on the residue of the medium and high grade samples to determine where the gold was being held so that if possible the recovery might be optimized.

One of the main objectives of the Avocet-funded exploration program was to determine the metallurgy throughout the deposit. A total of 448 samples have been taken and sent to Avocet's Penjom mine in Malaysia. Avocet has developed a proprietary process for treating ores of a similar nature to Qi-2 and are using it successfully at Penjom. Results from these samples are expected by September this year.

Dynasty has pre-emptive rights to the mining licence which sits over much of the Qi-2 ore body. The licence is held by Jinge Mining, an affiliate of the company's Chinese joint venture partner, Xinjiang Non-Ferrous Bureau (XNF). The area covered by the mining licence is 0.39sqkm. Dynasty, through its Chinese joint venture, holds approximately 600sqkm of exploration licences at Hatu.

Dynasty Gold is a Canadian gold exploration company in China with exploration programs at three gold properties and partnerships with AngloGold Ashanti and Avocet Mining. www.dynastygoldcorp.com