For the year ended 31 December 2007, the Group’s amount of gold output was 52,294kg, with an increase of 6.12% recorded, including 24,827kg of ore-produced gold, representing a growth of 19.53% over last year, and 27,467kg of refined gold. The Group’s gold output and ore-produced gold output represented approximately 19.33% and 10.50% respectively of the total gold output and total ore-produced gold output in the PRC. Copper output was 47,244 tonnes, including 8,070 tonnes of ore-produced copper cathodes, 39,174 tonnes of copper in concentrate form, representing a growth of 17.22% over the previous year. Iron concentrates output was 874,900 tonnes, with an increase of 45.82% recorded. Zinc output was 159,168 tonnes, with an increase of 121.93% recorded. The zinc output amount included 114,205 tonnes of zinc bullion and 44,963 tonnes of zinc in concentrate form.

The Chairman of ZiJin Mining, Mr. Chen Jinghe said, “With the slowdown of the global economic growth, the increase of financial risk, the expected downturn of the US economy, the impelling influence of geographical political tensions, the continuous upsurge of crude oil prices and substantial devaluation of the US dollar have all caused gold to be one of the most valuable investments for year 2007. Benefited from the above advantageous factors, the Group has achieved satisfactory results for the past year. Under the surging metal price and demand, the Group proactively increased mines’ output so that other businesses, besides the gold business, could accomplish a breakthrough development. We will ride on the positive market sentiment to expand our overseas’ business portfolio actively.”

Gold mine business remained the principal business of the Group. Sales income from the gold business of the Group represented 59.68% of the total annual sales income, and the net profit of the gold business represented 59.47% of the total net profit of the Group. The gold output from the Group’s main gold mines represented 83.3% of the Group’s total gold output. The gold production was mainly produced at the following mines: 15,893 kg was produced at Zijinshan Gold Mine, 2,354 kg was produced at Guizhou Shuiyindong Gold Mine, 1,422 kg of gold was produced in the form of concentrates at Hunchun Shuguang Gold and Copper Mine and 1,012 kg was produced at Chongli Zijin.

After half a year’s of hard work following the took over of the operation of ZGC project in Tajikistan in July 2007, the prolonged loss making position was reversed. For the year ended 31 December 2007, 410 kg of gold was produced and is expected to realize a profit in 2008.

Copper mine business recorded a steady growth during the year under review. Sales income from the copper mine business represented 15.39% of the annual total sales income, while it represented about 33.96% of the total net profit of the Group. Xinjiang Ashele Copper Mine produced 28,494 tonnes of copper in concentrate form. Zijinshan Copper Mine produced 8,032 tonnes of copper cathodes. Hunchun Shuguang Gold and Copper Mine produced 4,024 tonnes of copper in concentrate form. The new operation in Qinghai Deerni Copper Mine produced 5,000 tonnes of copper concentrates.

There was a significant growth in the Group’s zinc mine business. Zinc output recorded a substantial growth of 121.93% over last year. Sales income from zinc mine business represented about 18.66% of total annual sales income, while net profit represented about 5.15% of the total net profit of the Group. The major zinc production came from Wulatehouqi Zijin, which produced 28,748 tonnes of zinc in concentrate form; Xinjiang Ashele Copper Mine, which produced 9,808 tonnes of zinc from other associated metals; while other entities produced a total of 6,407 tonnes of zinc in concentrate form. Bayannaoer Zijin Zinc Refinery Plant produced a total of 114,205 tonnes of zinc bullions.

With the Group’s excellent geological expertise, four major exploration centers were established locally, in the southwest, the northeast and the northwest of China with two A-grade exploration qualifications. The exploration results were remarkable. For the year ended 31 December 2007, the metal (ore) reserves of the Group included gold of 638 tonnes (included 98 tonnes of gold associated with other metals); platinum and palladium of approximately 151 tonnes; copper of approximately 9.37 million tonnes; zinc of approximately 3.19 million tones; nickel of approximately 670,000 tonnes; lead of approximately 520,000 tonnes; molybdenum of approximately 310,000 tonnes; tin of approximately 100,000 tonnes; iron ores of approximately 167.9 million tones and coal of approximately 300 million tones; new reserves included bauxite of approximately 43.97 million, gallium of approximately 7,372 tonnes and tungsten of approximately 63,580 tonnes. The Group has become one of the enterprises that control most of the mineral resources in the PRC.

As at 31 December 2007, the Group has a total of 172 mine exploration rights, covering an area of 5,224.44 sq. km. The Group has 35 mining rights, covering an area of 51.8682 sq. km.

In order to realize its globalization strategy, the Group has made a great progress in its international investments in 2007 with the acquisition of three projects. The acquisition of the entire interest in Monterrico Metals plc, a company listed on AIM in the United Kingdom, through an associate company Xiamen Zijin Tongguan Investment Development Co., Ltd. made the substantial copper molybdenum mine in Rio-blanco in Peru under control. The Group also successfully acquired a 75% equity interest in JV Zeravshan Limited Liability Company in Tajikistan and accordingly controlled the exploration right in the largest gold mine in Tajikistan. Through acquisition, the Group has obtained a 70% interest in the Russia Kuton Gold Mine and Tuva Lead Zinc Mine in Tuva Republic of Russia.

In 2008, the Group will increase its mineral resources reserves in the PRC and overseas markets by ways of acquisition, merger as well as exploration. The Group plans to produce gold of approximately 57.3 tonnes, in which approximately 29.7 tonnes are produced from mines, and approximately 27.6 tonnes are processed gold; copper metal of approximately 59,000 tonnes; zinc metal of approximately 149,000 tonnes; iron concentrates of approximately 1.26 million tonnes; reduced iron of approximately 100,000 tonnes; processed copper of approximately 10,000 tonnes; silver metal of approximately 93 tonnes; and other new metal products like tin, tungsten and antimony.

Under the principles of production safety and environmental protection, the Group will actively boost the output of the gold mines. Business performance through investment in the mining industry will be enhanced to maintain the leading position of Zijin Mining in the gold markets. In addition, the Group will stabilize the production capacity, explore new business potential, reduce waste and take positive steps to mitigate the impact on profit caused by possible price-cuts. The Group will also implement effective measures to accelerate project construction and initial works.

In order to increase resources reserves, the Group will enhance geological exploration works. Firstly, the Group will conduct exploration research on the surrounding area and the deepest part of the existing mines. Secondly, the Group will explore the locations with good results in preliminary exploration and report the feasible exploration quantity in a timely manner. Thirdly, the Group will screen and search for potential primary exploration projects and commence the geological exploration systematically. Fourthly, the Group will place emphasis on the registration of exploration rights and the protection work in potential locations.

“2008 will be an important and meaningful year for future development of the Group. Especially after the foreseeable A Share listing, the Group will proceed to a new stage of development. We will further fortify our leadership position in the gold industry, and we strive to enhance better returns for our shareholders.” Mr. Chen concluded.

About ZiJin Mining Group Co., Ltd. (Stock code：2899)

The Group is a comprehensive mining conglomerate in China primarily engaged in gold production, and specifically engaged in the exploration, mining, processing, refining of gold and non-ferrous metals and other mineral resources, and the sale of mineral products.

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