VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 7, 2011) - China Gold International Resources Corp. Ltd. (News - Market indicators) (HKSE:2099) (the "Company") is pleased to announce that, in order to support the future expansion of the CSH gold mine, the local government has built a new water dam on the Muleng River beside the CSH mine, while the Company has completed construction of two water pumping wells right in the deepest centre of the reservoir and 3.3 kilometers of water supply pipe line connected to the Company's current secondary water pumping station.

Since commencing commercial production at the CSH gold mine, the processing capacity has increased to 30,000 tonnes per day ("tpd"). Potential increase in future production capacity could have been restricted due to limited water supply at the mine site. After completion of the new water dam in November 2011, the CSH gold project has secured at least one million cubic meters of additional annual water supply for future expansion. The capacity of the reservoir will be further increased in 2012, when the Company will excavate over 800,000 cubic meters of silt and clay, which will be used for future leach pad construction, from the reservoir.

The recent addition of the new water supply is a significant milestone for potential future expansion of the CSH gold mine. We are also currently working on increasing the resource at the mine site, and subsequently further increasing the production capacity, commented Dr. Xin Song, CEO of China Gold International Resources Corp. Ltd.

About Chang Shan Hao Gold Mine (CSH)

The CHS gold mine is an open pit, heap leaching gold mine located in Inner Mongolia of China, approximately 210 kilometers northwest of the city of Baotou. Production has increased each year since commercial production was reached in 2008. The annual commercial gold production was 33,671 ounces in 2008, 83,570 ounces in 2009 and 111,000 ounces in 2010. Production for 2011 is estimated to reach 120,000 to 125,000 ounces. The Company has also completed its 2011 drilling program at the mine site, and a full evaluation on the mine's new resources is in progress.

About China Gold International Resources Corp. Ltd.

China Gold International Resources Corp. Ltd. is a mineral development company focused on acquisitions, exploration, development, mining and processing of gold and other non-ferrous metals. The Company is listed on the Toronto Stock Exchange (News - Market indicators) and the Main Board of the Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") (HKSE:2099). The Company has been designated as the overseas flagship vehicle of China National Gold Group Corporation, the only gold producer in China directly controlled by the State-owned Assets Supervision and Administration Commission of the State Council.

Forward-looking statements

Certain statements made herein, and other statements relating to matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information and statements are typically identified by words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "plan", "estimate", "will", "believe" and similar expressions suggesting future outcomes or statements regarding an outlook. All such forward-looking information and statements are based on certain assumptions and analysis made by China Gold International Resources Corp. Ltd.'s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include those described under the heading "Risks and Uncertainties" elsewhere in the Company's MD&A filed at www.SEDAR.com. The reader is cautioned not to place undue reliance on forward-looking information or statements. Except as required by law the Company does not assume the obligation to revise or update these forward looking statements after the date of this document or to revise them to reflect the occurrence of future, unanticipated events.