Golden China Releases March 2007 Quarterly Update Report



    TORONTO, April 30 /CNW Telbec/ - Golden China Resources Corporation
(GCX: TSX, ASX) today released its quarterly update report, a regulatory
filing required by the Australian Securities Exchange (ASX). The briefing
summarizes key corporate events for the three months ended March 31st, 2007,
also reviewing the company's most recent, post-period (April) business
development highlights.
    "We are pleased with Golden China's operational progress during the
quarter, particularly involving our Beyinhar and BioGold projects, the
foundation of Golden China's medium term growth strategy," said Greg Starr,
President and Chief Executive Officer of Golden China. "Since our last
operational update, we've made solid strides towards significantly increasing
our cash flow from BioGold and moving Beyinhar into development this time next
year. This momentum is continuing in the current quarter, and we look forward
to providing updates on our progress as these advancements take shape."

    
    Highlights:

    - BioGold Facility - New off-take agreement concluded with Hellas Gold
      for the purchase of an additional 100,000 tonnes of concentrates over
      three years

    - Beyinhar Project scoping study indicates production of 100,000 ounces
      per annum at a low cost of US$280 per ounce.

    - Beyinhar updated NI-43-101 mineral resource estimate currently
      scheduled for completion in September 2007.

    - Beyinhar Feasibility Study commenced with completion scheduled for
      December 2007

    - Australian Solomons Gold (GCRC ~24%) releases Gold Ridge Feasibility
      Study summary

    Overview:

    Golden China continues to move forward with an immediate focus on
developing its Beyinhar gold project in the Chinese province of Inner Mongolia
and completing the expansion of its BioGold facility in Shandong.
    Beyinhar is emerging as a substantial asset for Golden China as
demonstrated in a recent scoping study, the results of which were announced in
a press release dated April 12, 2007. The project is expected to result in the
production of 100,000 ounces per annum with a low cash cost per ounce (US$280)
as well as a low capital cost (US$29M). It is anticipated that Beyinhar could
be in production as early as late 2008. The scoping study will be available on
SEDAR by May 28th, 2007.
    The basis for the focus on BioGold's expansion was also highlighted during
the quarter with the company entering into a long term agreement with European
Goldfields to purchase concentrate on an equal profit share basis from their
Hellas Gold Mine in Greece for an additional three years. This agreement will
form the foundation of the BioGold plant's expanded production base. As a
result of the greater production from the expanded plant, it is expected that
operating cash flow from BioGold will substantially improve.
    The potential for Golden China's strategic investment in Australian
Solomons Gold (TSX: SGA) has also improved during the quarter with the release
of results of the company's bankable feasibility study (BFS), highlighting the
project's robust nature. As outlined in a press release issued by Australian
Solomons Gold, which can be viewed on the company's website at
http://www.solomonsgold.com.au, the results suggest a seven year mine life
with 124,000 ounces of average annual production from the known resource. The
exploration potential in the region is also regarded as very positive.
    Also noteworthy, Golden China continues to attract the market's attention
with a number of analysts participating in a site tour of its projects, with a
particular focus on Beyinhar, in late April 2007. The objective of this
analyst visit is to create wider recognition in the market of the inherent
value of Golden China's assets.

    1. BioGold Production

    During the March (December) quarter, the BioGold facility processed 10,955
(9,831) tonnes of concentrate at a gold equivalent grade of 51.13 (59.34) g/t.
Equivalent gold won for the quarter was 15,809 (16,868) ounces, while gold
sales were 14,187 (22,710) ounces.
    Total plant production and sales for the December quarter are indicated in
Table 1 below:

    -------------------------------------------------------------------------
    BACOX and Cyanide Leach                      1 October -     1 January -
                                            31 December 2006   31 March 2007
    -------------------------------------------------------------------------
    Concentrate treated (tonnes)                       9,831          10,955
    Concentrate grade (Au eq. g/t)                     59.34           51.13
    Gold recovery (%)                                  90.53           87.79
    Silver recovery (%)                                88.14           87.93
    Gold won (Au eq. ozs)(1)                          16,868          15,809
    Gold production
    Third party goldroom purchases (ozs)                 777           1,750
    Refined gold sold (Au eq. ozs)(2)                 22,710          14,187

    (1) Gold equivalent calculated at $US651.91/oz Au and $US12.27/oz Ag.
    (2) Differences in gold produced from the plants and Gold
        Production/Sales report is due to inventory movements, doré purchases
        and toll treatment.

                       Table 1: Total plant production

    Production during the quarter was affected by power failures; however, a
new emergency back-up power system as part of the plant expansion is being
fast-tracked in order to eliminate the risk of further power outages impacting
on plant production. Without the power outages, plant production would have
been at planned levels.
    Cash flow during the quarter improved as a result of the increased volume
of Hellas concentrate treated in the BACOX(C) plant and treatment of the
existing stockpile of low-grade tailings through the CL plant. Treatment of
the low-grade residue resulted in lower treated grade and overall recoveries
during the quarter.
    The new flotation plant, goldroom and refinery operated without incident
during the quarter.
    During the quarter, the company entered into an off-take agreement with
Hellas Gold S.A., a subsidiary of European Goldfields Limited, for the
purchase of 100,000 tonnes of concentrates, to be supplied over a three year
period on an equal profit share basis, and processed at the new dedicated
BACOX(C) plant. This contract is in addition to the existing contract, which
has been extended until 31 December 2008.
    Given the greater level of international concentrates being processed at
BioGold, discussions are ongoing with China Construction Bank for an
additional credit facility for purchase and importation of this concentrate.
It is expected that this facility will be available during the next quarter.
    Planning for the BACOX(C) plant expansion project has progressed with the
Yantai Engineering and Design Institute as lead designer.

    2. Beyinhar

    2.1 Exploration

    Drilling at Beyinhar in the winter is weather prohibitive. As such, the
project's 2007 drilling programme commenced at the end of the quarter
(22nd March 2007) and is scheduled to complete over 17,000 metres within the
defined Beyinhar Central Zone as well as an extended programme on the newly
granted Beyinhar South West exploration license. Additional deeper holes,
between 120 metres and 150 metres deep, will be drilled to increase the
resource within the recently discovered sulphide zone below the oxide
resource. The drilling metreage is summarised in Table 2 below:

    -------------------------------------------------------------------------
    Area                             Meters Drilled in    Total Meters Since
                                               Quarter     Project Inception
    -------------------------------------------------------------------------
    Beyinhar                                       240                20,505
                                     ----------------------------------------
    TOTAL                                          240                20,505
                                     ----------------------------------------
                                     ----------------------------------------

                     Table 2: Beyinhar drilling metreage

    The two rigs on site completed two holes for a total of 240 metres,
resulting in total expenditures during the quarter of C$88,000. The first six
holes of the 2007 drill programme form part of the infill and extensional
drilling programme from which mineralized core will be selected and submitted
for bulk metallurgical test work with SGS in Perth. Drilling will continue
towards the SW Beyinhar area to delineate additional indicated and measured
resources.

    Click here to view Figure 1: Beyinhar project area
    http://files.newswire.ca/357/Beyinhar.doc

    An updated NI-43-101 mineral resource estimate is currently scheduled for
completion in September 2007.

    2.2 Scoping Study

    During the quarter, the company completed a NI-43-101 compliant
Preliminary Evaluation, ("Study") for the proposed development of the Beyinhar
project. The Study evaluated 9 potential mining and processing scenarios
comprising various permutations on Dump Leaching, Heap Leaching and CIL, with
an estimated accuracy of +/-30%. The outcome of the Study has indicated Heap
Leaching as the best process and proposes two stages of project development.
The first stage, which is based on Beyinhar's current resource, envisages a
production rate of 2.5 million tonnes per annum ("tpa"), subsequently building
to a production rate of 5 million tpa, with gold production of 100,000 ounces
per annum once the Beyinhar resource increases in size. The results of the
Study are shown in Table 3 below.

    -------------------------------------------------------------------------
                                                     Initial         Stage 2
                                                 Development     Development
    -------------------------------------------------------------------------
    Mine production (tpa)                          2,500,000       5,000,000
    Stripping ratio                                    1.3:1           1.3:1
    Gold recovery (%)                                     80              80
    Annualised gold production (ozs)    (greater than)50,000         100,000
    Estimated cash costs ($US/oz)                  270 - 280       260 - 270
    Estimated capital cost (M $US)                        22              29

                Table 3: Preliminary Evaluation Study results

    The metallurgical test work for the Scoping Study was carried out by SGS
Lakefield Oretest, ("SGS") in Perth, on a 160kg composite drill core sample
from the oxide zone at Beyinhar. The initial column leach test work was
carried out on a 12.5 mm crushed composite oxide ore sample from Beyinhar.
This test work achieved gold recoveries of between 82% and 85% over a 45 day
period as indicated in Figure 2 below.

    http://files.newswire.ca/357/Test_work.doc

    The inputs for the capital and operating costs for the process options of
Dump Leach, Heap Leach and CIL was provided by Kappes Cassiday and Associates
Australia Pty Ltd ("KCAA") in Perth. KCAA is the Australian subsidiary of
Kappes Cassiday and Associates, of Reno, Nevada, one of the foremost gold heap
leach specialists in the world. The mine operating costs and pit optimisations
were provided by Orelogy Pty Ltd, a mine design and consulting group based in
Perth. The mining operating costs were based on a contract mining scenario.
    A complete version of the NI 43-101 compliant scoping study will be
available on Golden China's website (www.goldenchina.ca) as well as on SEDAR
(www.sedar.com) in coming weeks.

    2.3 Feasibility Study

    In light of the favourable results of the study, which indicate that the
Beyinhar gold project could be developed as an open cut and heap leach
operation, Golden China has begun the metallurgical and engineering components
of a NI 43-101 compliant study on the oxide resource at Beyinhar. The proposed
timetable for the study is as follows:

    - Metallurgical test work - SGS Lakefield Oretest Pty Ltd
    - Updated 43-101 Resource - September 2007
    - Mine Design - October 2007
    - Engineering Study - November 2007
    - Feasibility Study completion - December 2007
    - EIS - March 2008

    Subject to the completion of the Feasibility Study around December 2007,
final engineering design and project approvals would then commence and proceed
in tandem. Current scheduling indicates construction commencing in April 2008,
with commissioning by the end of 2008.

    2.4 Chinese Standard Feasibility Study

    A Chinese Standard feasibility study is required to commence the
application to amend the approval conditions for the current Mining Licence at
Beyinhar. Discussions with Chinese engineering companies regarding this matter
have commenced and it is proposed that this process will proceed in tandem
with the KCAA Feasibility Study.

    2.5 CJV and Tenements

    The new Co-operative Joint Venture (CJV) company, Nei Menggu Golden China
Minerals, which is now a registered company following the approval of the CJV
business license at the provincial level in Hohhot this month, will hold the
Beyinhar licenses. Golden China owns 95% of the CJV.
    Transfer of the Mining License and Exploration License into the new CJV
has commenced.
    A new Exploration License (EL), abutting the existing EL and covering an
additional 33km2, which is believed to host the south west extension of the
Beyinhar ore body, was approved during the quarter. This new EL is owned 100%
by Golden China.

    3. Nibao

    3.1 Exploration

    Resource definition drilling re-commenced at Nibao after the observance of
the Chinese Spring Festival holidays. The drilling was conducted at two areas,
namely: Nibao West and Nibao Central. A total of 3,135m was drilled for
expenditures of C$918,000 during the quarter. The drilling metreage is
summarised in Table 4 below.
    A new range of structural targets have been generated from the work
completed by consultant Dr. David Gray of GeoStructures Pty Ltd who spent a
number of weeks on site during the quarter. Application for an additional
southern exploration license is underway.

    -------------------------------------------------------------------------
    Area                                Meters Drilled    Total Meters Since
                                            in Quarter     Project Inception
    -------------------------------------------------------------------------
    Nibao South                                      0                21,220
    Nibao East                                       0                17,461
    Nibao Central                                2,252                11,088
    Nibao West                                     883                 1,775
    May Day                                          0                 1,055
    NFE                                              0                   600
                                     ----------------------------------------
    Total                                        3,135                53,202
                                     ----------------------------------------
                                     ----------------------------------------

                       Table 4: Niabo drilling meterage

    4. Australian Solomons Gold (TSX-SGA): Golden China 24%

    Following the end of the quarter, Australian Solomons Gold released the
results of the Feasibility Study for the re-development of the Gold Ridge
mine. The Base Case Highlights are shown in Table 5 below:

    -------------------------------------------------------------------------
    Indicator                                                         Result
    -------------------------------------------------------------------------
    Mineral Reserve (Probable)                           1.15 million ounces
    Metallurgical Recovery                                               82%
    Mine Throughput                                                  2.5Mtpa
    Mine Life                                                        7 years
    Production Schedule                           2.5 Mtpa at 1.9g/t average
                                                    870,000 ounces recovered
    Average Annual Production:
      - Years 1 to 3                                     136,000 ounces gold
      - Life of Mine                                     124,000 ounces gold
    Cash operating costs:
      - Years 1 to 3                                        US$344 per ounce
      - Life of Mine                                        US$388 per ounce

    Internal Rate of Return:
      - Pre-tax                                                        27.6%
      - After-tax                                                      23.9%

    Payback Period:
      - Pre-tax                                                    3.3 years
      - After-tax                                                  3.9 years

    Pre-production capital                                   US$72.0 million

                   Table 5: ASG Feasibility Study summary

    The full press release is available on the ASG web site at
www.solomonsgold.com.au.

    5. Competent Person

    The review of exploration activities and results contained in this report
is based on NI-43-101 compliant reports as well as information compiled by
Mr Peter Secker, BSc (Hons) Mining Enginering, M Aus IMM, the company's Vice
President of Exploration and Development. Mr. Secker has sufficient experience
relevant to the style of mineralization and types of deposits as well as to
the activity that he is undertaking to qualify as a competent person as
defined in the December 2004 edition of the Australian Code for Reporting of
Exploration Results, Mineral Resources and Ores Reserves (the JORC Code).
Mr Secker has consented to the inclusion in this report of information in the
form and context in which it appears.

    G B Starr
    President and Chief Executive Officer
    26 April 2007

    About Golden China Resources Corporation:

    Golden China Resources Corporation is a significant participant and
consolidator in the Chinese precious metal industry and one of the largest
producers of gold in China. The company is using its extensive knowledge of
the Chinese marketplace and best practices based on established international
standards in building a diversified gold business focused on exploration and
development, operations, and corporate development in the Chinese precious
metal industry. Golden China's shares are listed on the main boards of both
the Toronto and Australian Stock Exchanges under the symbol GCX.

    Forward-Looking Statements: Statements in this release that are
forward-looking statements are subject to various risks and uncertainties
concerning the specific factors disclosed under the heading "Risk Factors" and
elsewhere in the Company's periodic filings with Canadian securities
regulatory authorities. The forward looking statements in this release and
documents referred to herein relate to future events or the Corporation's
future performance and reflect expectations and assumptions regarding the
growth, results of operations, performance, prospects and opportunities of the
Corporation. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results or
performance of the Corporation to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements, including but not limited to: uncertainties and
costs relating to exploration and development activities; uncertainties
related to feasibility and other studies that provide estimates or expected or
anticipated economic returns from a mining project; uncertainties related to
the accuracy of mineral reserve and mineral resource estimates; changes in,
and the effects of, the laws, regulations and government policies affecting
mining operations; general business, economic, competitive, political and
social uncertainties; future prices of gold; fluctuations in currency exchange
rates (principally US$ and the Chinese Renminbi/Yuan); labour difficulties,
environmental hazards, industrial accidents or other events or occurrences
that interrupt project schedules. Although the Corporation has attempted to
identify important factors that could cause actual results, performance or
achievements to differ materially from those described in forward-looking
statements, there may be other factors that cause results, performance or
achievements not to be as anticipated, estimated or intended. There can be no
assurance that actual events, performance or results will be consistent with
these forward-looking statements and accordingly readers should not place
undue reliance on forward-looking statements. The Corporation assumes no
obligation to update or revise forward-looking statements to reflect new
events or circumstances, except as required by law. Such information contained
herein represents management's best judgment as of the date hereof based on
information currently available. The Company does not assume the obligation to
update any forward-looking statement.

                 THE TSX HAS NOT REVIEWED AND DOES NOT ACCEPT
         RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
    
    %SEDAR: 00009239E




For further information:

For further information: Golden China Resources Corp.: Kristen (Boucher)
Humphrey, Communications Manager, (416) 366-8818 ext. 230,
khumphrey@goldenchina.ca; www.goldenchina.ca; Renmark Financial Communications
Inc.: Barbara Komorowski, bkomorowski@renmarkfinancial.com; Neil Murray-Lyon,
nmurraylyon@renmarkfinancial.com; (514) 939-3989, Fax: (514) 939-3717;
www.renmarkfinancial.com

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GOLDEN CHINA RESOURCES CORPORATION

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