Reclamation Report for Continentals Xietongmen Project Approved

Monday, August 18th 2008

Continental Minerals Corporation announces agency approval has been received for the Land Reclamation Report for the Xietongmen Project in the Tibet Autonomous Region, China.

Finalization of the Land Reclamation Report moves Continental one step closer to achieving the legal authorization and social license required to successfully develop the Xietongmen Project. Returning affected lands to a productive public use after mining is an important facet of Continental’s commitment to develop a project that creates meaningful benefits for local communities, while protecting important environmental and cultural values.

The Xietongmen porphyry copper-gold deposit was discovered by drilling in 2005. A comprehensive program for the Project commenced in 2006, designed to collect the data necessary for the completion of all reports required by the Chinese government to apply for a mining license and feasibility study. Seven reports, including the positive feasibility study announced in August 2007, for the mining license application were completed by January 2008. The final report – the Land Reclamation Plan – has been approved. The mining license application is currently being compiled and is planned for submission in the third quarter of 2008.

The technical studies for these reports have also provided data for a social and environmental impact assessment (“SEIA”) that is being completed in accordance with international standards and will play an important role in the financing of the Project. Consultation on the preliminary SEIA findings, mitigation and management strategies was conducted with government officials and local communities in late 2007. Engagement activities included presentations, site tours and informal discussions as well as workshops were held in the local communities. Feedback from the sessions has been incorporated into the SEIA. The final international SEIA report is currently under review and is expected to be completed in the third quarter. Results will be summarized in English, Mandarin and Tibetan in a document that is available to stakeholders.

President and CEO David Copeland said: “We are currently working on engineering design and carrying out geotechnical drilling at site. Although this phase of the project does not lend itself to ongoing release of results, we continue to make good progress toward our mining license application and completion of technical, environmental and social studies for the Project.”