SINO GOLD APPROVES DEVELOPMENT OF WHITE MOUNTAIN

Sino Gold Mining Limited (ASX: SGX, SEHK:1862) is pleased to advise that the Companys Board of Directors has approved development of the Companys second gold mine, the White Mountain Gold Project in Jilin Province, northern China.

Mobilisation and site preparation is in progress with site construction to commence in earnest once the Provincial Project Permit is received. The Environmental Impact Assessment (EIA) approval has already been received and the Company is confident that the Provincial Project Permit will be received within the next 4 to 6 weeks.

Highlights

• Gold production of approximately 70,000 ounces per annum;
• Forecast capital cost of US$55 million (including contingency);
• Operating costs of less than US$250 per ounce; and
• Commissioning to commence in late 2008 with commercial production in early 2009.

Sino Gold Chief Executive Officer, Jake Klein, commented:

We are delighted to be commencing the construction of our second gold mine. White Mountain will be a financially robust, simple underground mining operation producing about 70,000 ounces per year.

Very few mining projects in the world have been progressed this quickly C it is only three years since the discovery of White Mountain. I would like to express my gratitude to the many government officials supporting the project and to Sino Golds White Mountain team who have done an outstanding job at progressing this mine."

This announcement continues and is available at www.sinogold.com.au

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