Golden China Resources has made good progress at its BioGold processing facility in Shandong province and its Beyinhar gold project in Inner Mongolia. These Chinese projects are focal points of the company"s medium term growth strategy.

Earlier this year a new off-take agreement was signed with Hellas Gold for the purchase of an additional 100,000 tonnes of gold concentrates over three years, which will generate an additional 25,000 ounces of gold per year at BioGold.

The expansion of the company's bacterial oxidation plant at BioGold, anticipated for completion by the end of this year, will enable Golden China to process the significantly expanded volumes secured under this new long-term agreement. Anticipated for completion by the end of 2007, the expansion is expected to increase treatment capacity twofold from a current 100 tonnes per day to 200.

Golden China has also released its first resource statement on its Beyinhar gold project in the Chinese province of Inner Mongolia, identifying measured and indicated resources of 475,000 ounces and an inferred resource of 130,000 ounces. As well, the company has confirmed continuity of a high-grade sulphide gold zone at Golden China's Beyinhar gold project.

A revised resource statement will be released in October and a feasibility study will be undertaken at the end of this year.

Golden China Resources is a significant participant and consolidator in the Chinese precious metal industry and one of the largest producers of gold in China. The company is using its extensive knowledge of the Chinese marketplace and best practices based on established international standards in building a diversified gold business focused on exploration and development, operations and corporate development in the Chinese precious metal industry.