CHINA GOLDMINES PLC

China Goldmines reports that on the 15th and 16th May, fifty or more broke into the Xiang Lu (eastern mine site) and the Bao Mu Yuan Plant and raided high-grade ore/concentrate and threatened staff. On the 17th May, CGM's Chinese Joint Venture Company, Hunan Westralian Mining Co., Ltd, decided to temporarily close the Xiang Lu mine site for the safety and well-being of the company's Western and Chinese workers and to avoid further theft of high-grade ore. The company is now working closely with the County Government and Police in reviewing this attack and taking all possible actions to apprehend the culprits and China Goldmines' immediate safety needs. From 1 April to 15 May 8,590T was mined, and 5,975T containing 2,193 oz gold was milled during the period. Average grade achieved during the period was 12g/t.