Sino Gold

Sino Gold has been active in China since 1996 and is China’s largest foreign gold producer. The Company is developing the Jinfeng gold mine in Guizhou Province, southern China, which has Mineral Resources containing 4.0 million ounces and Ore Reserves containing 2.9 million ounces.

Once developed, Jinfeng will be the second largest gold mine in China with production of 180,000 ounces per annum. A proposal to accelerate production from the underground mine as part of the Phase 2 expansion is currently being progressed.

The White Mountain project in Jilin Province, northeast China, has good potential to become Sino Gold’s next mine. Drilling during 2006 is aimed at increasing the Mineral Resource containing 436,000 ounces and progressing the project to feasibility stage.

Sino Gold is a growth gold company that is actively pursuing a discovery and acquisition strategy in China. With a ”first mover” advantage, it holds a strong competitive position in China.

For further information, contact: Phone: +61 2 8259 7000 Fax: +61 2 8259 7070 Email: info@sinogold.com.au Web: www.sinogold.com.au KEY POINTS Jinfeng .. Construction on schedule for first gold production in the December quarter. .. Capital cost guidance revised to US$90-95 million (previously US$85-90 million). .. Underground mine design progressed based on new Ore Reserves of 2.9 million ounces of gold. .. Diamond drilling continues to extend the deposit down dip and the high-grade zone to the east-southeast. White Mountain .. Shareholding in project increased from 80% to 95%. .. Drill results continue to indicate high potential to significantly increase the resource identified in 2005 and previously unreleased drill intercepts include 60.7m at 3.9gpt, 30.3m at 6.8gpt and 12.1m at 8.7gpt gold. .. Drill intercepts received during the quarter of 10.0m at 19.1gpt gold and 19.5m at 3.1gpt gold have extended known mineralisation by approximately 450m to the northeast. .. A strong IP resistivity anomaly extends at least 400m further northeast, indicating continuation of the major fault zone controlling gold mineralisation. Jianchaling .. Gold production of 2,076 ounces at a cash operating cost of US$479/oz for the quarter as June mill production was deferred to July. Business Development .. Two new Heads of Agreement signed for exploration properties. Corporate .. Mr. Peter Housden appointed as a non-executive Director.

.. Cash available of US$43.2 million at the end of June. US$25 million of the project finance facility remains undrawn.