Golden China Releases September 2007 Quarterly Update Report

    TORONTO, Oct. 29 /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 September 30th,
2007, also reviewing the company's most recent, post-period (October) business
development highlights.



    - Sino Gold Mining Limited (Sino Gold) agrees, subject to certain terms
      and conditions, to make a take-over offer for all of the shares of
      Golden China. Under the terms of the offer, Golden China shareholders
      and CDI holders will receive one Sino Gold share for every 4.5 Golden
      China common shares they hold.

    - Subsequent to the quarter end, Sino Gold mails its Offering Circular to
      Golden China shareholders. Also included in the package is a Directors
      Circular from Golden China, which includes an independent fairness
      opinion prepared by Genuity Capital Markets concluding that the offer
      consideration is fair from a financial point of view to Golden China
      shareholders (excluding Sino Gold).


    - Work on the updated 43-101 Resource Statement for Beyinhar commenced
      and is scheduled for completion in late November 2007.

    - Beyinhar Feasibility Study is scheduled for completion January 2008.


    - BioGold production is down due to high grade supplies being delayed
      until October due to the impact of cyclones and resulting flooding at
      concentrate supplier mines.

    - An emergency back-up power system has been installed to mitigate the
      risk from further unplanned grid power disruptions.

    - The BACOX(C) plant expansion project construction began in late July,
      with completion expected early in the first quarter of 2008.


    - Issued 5,882,352 common shares at a price of C$0.85 per share on a
      private placement basis to Sino Gold, raising C$5,000,000.

    - Completed the acquisition of shares of Golden China Management Inc.
      from Kingsway Capital of Canada Inc.

    1. Take-over Offer

    On 7 September 2007, Sino Gold agreed, subject to certain terms and
conditions, to make a take-over offer (the "Offer") for all of the shares of
Golden China.
    Sino Gold, a gold mining company listed on the Australian Securities
Exchange (ASX) and Hong Kong Stock Exchange (HKSE), has been active in China
since 1996. Sino Gold owns 82% of the Jinfeng gold mine in southern China, one
of the largest gold mines in China. The company also has a 95% interest in the
White Mountain project in northeast China, which is on track to become its
next mine. Further information on Sino Gold can be found at
    Under the terms of the Offer, Golden China shareholders and CDI holders
will receive 0.2222 of a Sino Gold share for every Golden China common share
they hold. Details are available in Sino Gold's Offering Circular and Golden
China's Directors' Circular, which were mailed to Golden China shareholders on
24 October 2007. The documents are also available on SEDAR at
and the ASX at

    The Offer is subject to certain conditions, including:

    - The granting of all appropriate regulatory approvals;

    - No material adverse changes or other material adverse events occurring
      to Golden China; and

    - A minimum 90% acceptance by Golden China shareholders.

    Golden China's board of directors engaged a Canadian investment bank,
Genuity Capital Markets, to review the Offer. Genuity has concluded that the
Offer is fair from a financial point of view to Golden China shareholders
(excluding Sino Gold).

    The Offer has the unanimous support of the Golden China board. Each
director has advised that they intend to tender their own Golden China shares
to the Offer.

    The Offer is expected to close on 30 November 2007 unless extended.
    In the event of a successful completion of the Offer, it is expected that
Golden China will de-list from the Toronto Stock Exchange (TSX) and ASX, and
that shareholders will receive Sino Gold shares, which are listed on the ASX
and HKSE. As detailed in the Offering Circular, for the benefit of TSX
shareholders, Sino Gold has made arrangements with an agent to assist
interested Canadian retail accounts in selling their shares on the ASX.
    In the meantime, the Company continues to operate in the normal course of

    2.0 Beyinhar

    2.1 Exploration

    There are currently three drill rigs on site, which completed
10,810 metres during the quarter.

    Area                                  Metres Drilled Total Metres Since
                                              in Quarter  Project Inception
    Beyinhar                                      10,810             38,489
    TOTAL                                         10,810             38,489

                     Table 1: Beyinhar drilling metreage

    Drilling is continuing towards SW Beyinhar (EL2, which is 100% owned by
Golden China) to delineate additional indicated and measured resources. This
is shown in Fig. 1 below:

               Fig 1: Beyinhar 2007 Planned Drilling Programme

    Highlights of the 2007 drilling programme are shown in Table 2. An updated
NI 43-101 mineral resource estimate will commence in September 2007 and is
currently scheduled for completion in November 2007.

    Hole ID         From          To      Length       Grade  Classification
                      (m)         (m)         (m)   (g/t) Au
    BYD142           118         195          77        4.08
      including      134         195          61        5.03        sulphide
    BYD153            48        87.2        39.2        1.73           oxide
    BYD157            58         110          52         1.1           oxide
    BYD160           138       206.6        68.6        1.16        sulphide
    BYD164            26          48          22        1.36           oxide
    BYD165            92         129          37        0.50        sulphide
    BYD167            44          66          22        0.91           oxide
    BYD169            56          80          24        0.62           oxide
    BYD170            24          54          30        0.43           oxide
    BYD172            50          70          20        0.79           oxide
    BYD173            60          78          18        0.54           oxide
    BYD174            74         120          46        2.44        sulphide
    BYD175            30          54          24        0.61           oxide
    BYD181            42          82          40        0.53           oxide
    BYD183             8          42          34        2.16           oxide
    BYD184           120         140          20        1.73        sulphide
    BYD185            50          76          26        0.47           oxide

                 Table 2: 2007 Drilling Programme highlights

    2.2 Feasibility Study

    Completion of the first draft of the Feasibility Study is still scheduled
for mid/late January 2008. The proposed timetable for the study remains as

    - Metallurgical testwork                                    October 2007

    - Updated 43-101 Resource                                   November 2007

    - Mine Design                                               December 2007

    - Engineering Study                                         December 2007

    - Feasibility Study                                         January 2008

    - EIS                                                       March 2008

    During the quarter, the following work was undertaken on the Feasibility

    - All mine-related exploration activities, including hydrological,
      geotechnical drilling and logging, and the topographic/collar surveys,
      were completed;

    - The process water supply investigation commenced and is scheduled to be
      completed by late October. Initial pump tests indicate water flows
      (greater than)2,000m3/day;

    - A further 50kg of core samples with grade range between 0.5 and
      1.00 g/t Au and representing the 2-km strike length was submitted for
      coarse bottle roll leach tests for ore body variability analysis;

    - Kappes Cassiday Australia and Associates (KCAA) completed preliminary
      Flow Diagrams and Design Criteria; and

    - SGS metallurgical test work on the bulk ore sample underway and is
      scheduled for completion in late October.

    2.3 Chinese Standard Feasibility Study

    A Chinese Standard Feasibility Study is required to commence the
application to adjust the approval conditions for the current Mining License
at Beyinhar. The Beijing General Research Institute for Mining and Metallurgy
(BGRIMM) has been appointed to carry out this work and has completed its site
visits and collected the necessary data and other information.

    2.4 Co-Operative Joint Venture Company and Tenements

    Discussions are ongoing with our JV partner regarding the necessity of
certain procedural actions in relation to license transfer to the CJV. To
mitigate delay of the license transfer, Golden China may make additional
separate multi-stage payments based on the achievement of certain agreed
procedural milestones.

    3. BioGold Production

    During the September (June) quarter, the BioGold plants processed 12,624
(8,777) tonnes of concentrate at a gold equivalent grade of 26.68 (69.07) g/t.
Equivalent gold won for the quarter was 9,022 (17,659) ounces, while gold
sales were 14,141 (23,595) ounces. Total plant production and sales for the
September quarter are indicated in Table 3 below:

    Bacox and Cyanide Leach                     1 July -           1 April -
                                            30 September             30 June
                                                    2007                2007
    Concentrate treated (tonnes)                  12,624               8,777
    Concentrate grade (Au eq. g/t)                 26.68               69.07
    Gold recovery (%)                              83.64               91.31%
    Silver recovery (%)                            82.00               88.47%
    Gold won (Au eq. ozs)(1)                       9,022              17,659
    Third party goldroom purchases (ozs)           2,644               6,269
    Refined gold sold (Au eq. ozs)(2)             14,141              23,595

    (1) Gold equivalent calculated at $US678.51/oz Au and $US12.80/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 3: Total plant production

    Gold grade and gold won decreased during the quarter, despite higher
production throughput and improved BACOX(C) operations, due to the treatment
of lower grade material. Delivery of substantial tonnages of higher grade
concentrates was delayed over two months until early October due to regional
flooding and infrastructure damage in the Fujian Province. Efforts continue
toward securing further international concentrate sources.
    The base metal flotation plant, goldroom and refinery operated without
incident during the quarter.
    An emergency back-up power system was installed during the quarter to
mitigate the risk of further power outages impacting on BACOX(C) plant
    The BACOX(C) plant expansion project construction began in late July, with
completion expected early in the first quarter of 2008.

    4. Nibao Exploration

    Resource at Nibao continued mainly in the May Day area and a total of
1,513 metres was drilled during the quarter. Details are shown in Table 4.

    Area                                  Metres Drilled  Total Metres Since
                                              in Quarter   Project Inception
    Nibao South                                        -              19,567
    Nibao East                                       220              17,936
    Nibao Central                                      -              10,794
    Nibao West                                         -               1,775
    May Day                                        1,293               3,320
    NFE                                                -                 643
    Total                                          1,513              54,035

                       Table 4: Niabo drilling meterage

    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.
    A number of structural drill-holes at Nibao East were completed. The
primary objective of these holes was to define the relationship of various
gold drill intercepts of the nearby old diamond drill holes and the latest
structural interpretation of the recumbent fold over the Nibao Thrust.
    The application for the new southern exploration license was approved and
granted during the quarter and drilling work will commence on the higher grade
Nibao South extension during the next quarter.

    5. Australian Solomon's Gold (TSX-SGA): Golden China 19.3%

    In a press release on July 18, 2007, ASG announced that it would issue up
to 13,050,000 subscription receipts at a price of $1.15 per Subscription
Receipt for gross proceeds of up to $15 million. The net proceeds of the
private placement, which closed subsequent to the quarter end, are to be used
to fund continued exploration and preliminary development activities for the
Gold Ridge Project, and for working capital and general corporate purposes.
    In the press release, ASG stated that it has made considerable progress to
date with preliminary development activities and that a procurement schedule
for key equipment items needed for the refurbishment is under consideration
and that it expects that production from the Gold Ridge Project is now
estimated to commence by the second quarter 2009.
    ASG says that it also intends to focus on continuing exploration in the
Charivunga Gorge and surrounding areas while pushing ahead with the
preplanning and early development stages of the refurbishment of the
processing plant.
    The full press releases referred to above are available on the ASG web
site at

    6. Corporate

    On 18 September 2007, Golden China Resources Corporation issued
5,882,352 common shares at a price of C$0.85 per share on a private placement
basis to Sino Gold Mining Limited, raising C$5,000,000. As a result of the
private placement, Sino Gold now owns approximately 9.5% of the issued and
outstanding Golden China common shares.
    Net proceeds of the financing will be used for feasibility study work at
Golden China's Beyinhar gold project as well as for working capital purposes.
    On 9 August 2007, following approval by shareholders, Golden China
Resources completed its acquisition of the outstanding common shares of Golden
China Management Inc. from Kingsway Capital of Canada Inc for:

    - C$500,000, of which C$250,000 was paid on closing and the balance paid
      in September following the equity raising referred to above;

    - 1,176,471 common shares of the Corporation; and

    - Options to acquire an aggregate of 3,500,000 common shares of the
      Corporation exercisable for a period of five years after the closing
      date at an exercise price of C$1.25 per share.

    The terms of this acquisition were approved by shareholders in a general
meeting on 7 August 2007.

    7. 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. Alphonso Latorre, M Aus IMM, the company's Beyinhar Project Manager.
Mr. Latorre 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. Latorre has consented to the inclusion in
this report of information in the form and context in which it appears.

    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 Stock Exchange and the Australian Securities Exchange under the
symbol GCX.
    On August 13, 2007 Golden China announced an Agreement to be acquired by
Sino Gold Mining Ltd. whereby Golden China shareholders would receive one Sino
Gold share for every 4.5 Golden China common shares they hold. A definitive
support agreement was signed on September 7, 2007 and on September 18, 2007
Sino Gold purchased from treasury 5,882,352 million shares of Golden China
representing 9.5% of the issued and outstanding shares of the Corporation.

    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. 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.

    %SEDAR: 00009239E

For further information:

For further information: Golden China Resources Corp.: Kristen Humphrey,
Communications Manager, (416) 366-8818 ext. 230,,; Renmark Financial Communications Inc.: Barbara Komorowski,; Julien Ouimet,;
(514) 939-3989, Fax: (514) 939-3717,

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