Sino Gold successfully completes A$170 million placement



    TORONTO, Dec. 14 /CNW/ - Sino Gold (ASX Code: SGX, SEHK: 1862) announces
that it has successfully completed an A$170 million placement through the
issue of 26.46 million ordinary shares to institutional investors
("Placement"). There was very strong demand for the Placement which was
heavily over subscribed.
    The Placement was conducted through a bookbuild process joint lead
managed by Macquarie Equity Capital Markets and Merrill Lynch with a final
price of A$6.45 per share. The final price represents a 4.4% discount to the
closing price of Sino Gold shares of A$6.75 on the day immediately prior to
the announcement of the Placement. Austock Corporate Finance acted as broker
to the issue.
    Commenting on the Placement, Mr Jake Klein, CEO of Sino Gold said:
    "The support by new and existing shareholders for the Placement is a
strong endorsement of the Company's strategy and leading position in China's
gold industry.

    
    The Placement will be settled in two tranches:

    -  Unconditional Tranche: 9.79 million shares to be settled on
       19 December 2007; and

    -  Conditional Tranche: 16.67 million shares which will be settled
       subject to approval at an extraordinary general meeting of Sino Gold
       shareholders, expected to be held on 24 January 2008.

    The shares were allotted to a range of institutional investors globally
and to Sino Gold's major shareholder, Gold Fields Limited. A total of
4.36 million shares were allotted to Gold Fields Limited.

    The funds raised by this A$170 million placement are planned to be used as
follows:

    -  Eastern Dragon acquisition and associated costs
       of approximately A$105 million;

    -  Eastern Dragon exploration and working capital
       of approximately A$5 million;

    -  Construction, pre development, feasibility and exploration of various
       assets including Beyinhar, Nibao, Biogold and White Mountain along
       with general working capital of approximately A$40 million; and

    -  General working capital and exploration and development of other
       existing assets of approximately A$20 million.
    

    The Stock Exchange of Hong Kong requires disclosure in relation to the
HK$894.15 million raised by the Company in its Initial Public Offering (IPO)
in March 2007. Of the funds raised a total of HK$749 million has been used as
anticipated, with the funds remaining still allocated to the Jinfeng
underground pre-production development.

    Further information on the Eastern Dragon gold deposit in Sino Gold's
announcement dated 13 December 2007, available on the Company's website
(www.sinogold.com.au).

    Cautionary Statement on Forward-Looking Information

    There can be no assurance that the Eastern Dragon acquisition or the
private placement will be completed on terms acceptable to Sino Gold, or at
all, or, if the Eastern Dragon acquisition is completed that Sino Gold will
not face difficulties in managing the investment or integrating the
acquisition with its operations or that it will be able to achieve the
strategic purpose of such an acquisition.
    Certain information included in this release, including any information
as to future financial or operating performance and other statements that
express expectations or estimates of future performance, constitute
"forward-looking statements". The words "expect", "will", "intend", "estimate"
and similar expressions identify forward-looking statements. Forward-looking
statements are necessarily based upon a number of estimates and assumptions
that, while considered reasonable by management of Sino Gold are inherently
subject to significant business, economic and competitive uncertainties and
contingencies. Sino Gold cautions the reader that such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual financial results, performance or achievements of
Sino Gold to be materially different from their respective estimated future
results, performance or achievements expressed or implied by those
forward-looking statements and the forward-looking statements are not
guarantees of future performance. These risks, uncertainties and other factors
include, but are not limited to: changes in the worldwide price of gold or
certain other commodities (such as fuel and electricity) and other currencies;
changes in U.S. dollar interest rates or gold lease rates; risks arising from
holding derivative instruments; ability to successfully integrate acquired
assets; legislative, political or economic developments in the jurisdictions
in which Sino Gold carries on business; operating or technical difficulties in
connection with mining or development activities; employee relations;
availability and increasing costs associated with mining inputs and labour;
the speculative nature of exploration and development, including the risks of
diminishing quantities or grades of reserves, adverse changes in our credit
rating, contests over title to properties, particularly title to undeveloped
properties; and the risks involved in the exploration, development and mining
business. These factors are discussed in greater detail in Sino Gold's
statutory releases filed with the Australian securities regulatory
authorities.
    Sino Gold disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future
events or otherwise, except as expressly required by applicable law.

    NEITHER THE ASX NOR THE SEHK HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR
    THE ADEQUACY OR ACCURACY OF THIS RELEASE.





For further information:

For further information: regarding Sino Gold please contact: Investor
Enquiries: Jake Klein, CEO or Roger Howe, Investor Relations, +61 2 8259 7000,
info@sinogold.com.au; Media Enquiries: Kate Kerrison, +61 2 6746 3221,
kate@katekerrison.com.au

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SINO GOLD MINING LIMITED

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