Beyinhar Mineral Resources and Reserves

March 2008

On 5 March 2008, Sino Gold Mining Limited announced the following updated Mineral Resource
estimate and initial Ore Reserve estimate for the Beyinhar project, located near Sonid Zouqi,
Autonomous Region of Inner Mongolia, People’s Republic of China.
Mineral Resources
Mineral January 2007 March 2008
Resource Million Grade Ounces Change Million Grade Ounces
Category Tonnes (g/t Au) (‘000) (%) Tonnes (g/t Au) (‘000)
Oxide
Measured 6.4 0.80 164 -79 1.0 1.06 35
Indicated 19.7 0.60 380 45 28.0 0.61 552
Subtotal M+I 26.1 0.65 544 8 29.0 0.63 587
Inferred 16.0 0.38 196 -65 4.6 0.47 69
Total 42.1 0.55 740 -11 33.7 0.61 656
Sulphide
Inferred 100 17.3 0.65 360
Total 100 17.3 0.65 360
Grand Total 42.1 0.55 740 37 51.0 0.62 1,016

Ore Reserves
Ore Reserve Million Grade Ounces
Category Tonnes (g/t Au) (‘000)
Proved 1.0 1.07 35
Probable 20.4 0.71 464
Total 21.4 0.72 499

The JORC Code checklist below provides further information in relation to the above Mineral
Resource and Ore Reserve estimates.

Background
Sino Gold acquired the Beyinhar project as part of its successful takeover of the Golden China
Resources Corporation (“Golden China”). The data used in this new resource estimate is based
on results from Golden China’s work program to 30 November 2007.

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The previous resources estimate was published by Golden China on 9 January 2007 at a 0.30g/t
Au cut-off grade, of Measured and Indicated Resources of 17.6 million tonnes at 0.84g/t gold for
475,000 contained ounces and an Inferred Resource of an additional 7.5 million tonnes at
0.54g/t gold for 130,000 contained ounces.
This updated resources estimate incorporates an additional 148 surface diamond drill holes
totaling 20,937 meters, which have been drilled since the November 2006 resources estimate.
The nominal cut-off date for this estimate is 30 November 2007.
The updated Mineral Resource estimate for the Beyinhar gold deposit totals 51.0 million tones at
0.62 g/t gold, containing 1.0 million ounces (at a cut-off grade of 0.20g/t gold). The bulk of the
resource is situated in the oxide zone and is being considered as a heap leach mining operation,
which totals 33.7 million tones at 0.61g/t gold, containing 0.66 million ounces (at a cut-off grade
of 0.20g/t gold). This oxide resource is hosted mainly by the Beyinhar Shear Zone. The sulphide
mineralisation includes high-grade epithermal quartz veins which will be the focus of future
deeper exploration.
The impact of assuming various cut-off grades on the total Mineral Resource is illustrated in the
grade-tonnage curve below.

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The impact of assuming various cut-off grades on the Measured and Indicated Resource is
illustrated in the grade-tonnage curve below.

Quality Control
These Mineral Resources and Ore Reserves are presented in accordance with the 2004 Edition
of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (“JORC Code”).
The information relating to the Mineral Resources estimate was compiled geologists employed
by Golden China, including, Mr Tom Zhu and Mr Alfonso Latorre (MAusIMM). Sino Gold
employees Mr Phillip Uttley (FAusIMM) and Dr Stuart Munroe (MAusIMM) assisted in the re-
categorisation of the Mineral Resources.
The information herein relating to the Mineral Resources estimate is provided by Mr Mario Rossi
(FAusIMM), who takes responsibility for its content. Mr Rossi is an independent consultant
geostatistician and mining engineer from the international consulting firm Geo Systems
International (“GSI”). He has over 19 years relevant experience in exploration and evaluation of
various styles of gold deposits.
The information herein relating to the Ore Reserve estimate is provided by Mr Steve Craig
(MAusIMM), who takes responsibility for its content. Mr Craig is an independent consultant with
Orelogy and has over 20 years relevant experience in evaluation of gold deposits.
Mr Rossi and Mr Craig are both Competent Persons as defined in the JORC Code. They
consent to the inclusion in this report of the information in the form and context in which it
appears.

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Sampling Techniques and Data
Drilling Techniques
• Standard tube diamond drilling, PQ/HQ core diameter throughout.
Core Logging
• All cores were marked up, measured for recoveries and RQD then geologically logged.
• The geologic logging was entered in a logsheet, including Collar / Geology (Lithology,
Oxidation/Weathering, Alteration, Mineralization, Structure and Veining)/
Core_Orientation / Drillsite_RockQualification / Coreyard_Sampling / Photo_Record.
• Full digital core photography of all drilling after core logging and sample marking, but
before core cutting. Two photos of each core tray taken, one dry and one wet with labels
showing hole id, run, depth and box numbers.
Core Orientation
• Core orientation by spearing was carried out on every hole but selectively on unbroken
ground
• Structural measurements were carried out on successful orientation marks where bottom
of core (“BOC”) reference lines have been drawn
• Alpha angles were measured as the acute angle between the core axis and the long axis
of the intersection ellipse. Beta angles were measured with a linear protractor clockwise
from the bottom of hole line to the marked bottom of ellipse by holding the core so that
the “direction arrows” were pointed down
• The dip and dip direction angles were automatically calculated from the measured alpha
and beta entries by using embedded formula
Drill Sample Recovery
• Core recoveries recorded per drill run interval. Average drill core recovery rate for PQ is
98.4% and 96.60% for HQ.
• No obvious close relationship exists between sample recovery and grade was found after
detailed checking.
• No bias is suspected to have occurred due to preferential loss/gain of fine/coarse
material.
Sub Sampling Techniques and Sample Preparation
• All cores were cut lengthwise with a diamond core saw with one half retained in the trays
for storage.
• The remaining halves were sampled at 2 m intervals, crushed to -5 mm and weighed.
• -5 mm samples were placed in 1.5 and 2 kg pre-numbered plastic bags and boxed for
dispatch and analysis together with blank, duplicate and standard samples inserted at
pre-determined interval (once every 10 samples)
• Whole 1.5 to 2 kg samples submitted to the laboratories were further crushed to -3 mm
and ring pulverised/homogenised to 90% passing -200 mesh
• Riffle splitting with approximately 100 gm sample packaged, labeled for analysis. Intertek
used rotary splitter in some of the samples as recommended by GSI. Reject splits were
bagged and retained on-site.

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Quality of Assay Data and Laboratory Tests
• Sample analysis was undertaken at ACME in Canada in 2004, SGS in Tianjin in 2005-
2006 and Intertek Lab in Beijing in 2007 with independent check analysis undertaken by
both the PRA laboratory in Kunming and ALS-Chemex in Brisbane.
• ACME Lab applied Fire Assays on a 30 gm charge (FA30) for gold and ICPMS (0.5 gm
charge) for other multiple element suite as well as SFA (Screen Fire Assay) for
suspected coarse gold on selected batches (2 drillholes); SGS used FA30 with AA finish
but conducted comparative tests using FA50. Intertek analyzed all samples using FA50.
• A total of 216 samples sent out to independent laboratory ALS-Chemex in Brisbane and
PRA in Kunming are used for external checks.
• A total of 2,593 controlling samples including blank, duplicates and standard are inserted
in a ratio of 1 in 10 for all analyzed samples.
• A total of 8 different standards (0.098, 0.727, 1.43, 1.61, 2.56, 2.77, 3.63 and 9.64 ppm)
from Ore Research and Exploration Pty Ltd., Australia were used since commencement
of drilling at Beyinhar.
• Apart from inter-lab and intra-lab checks, analytical checks (FA30 vs FA50; Leachwell vs
FA30 and FA30 vs SFA) as well as Re-splits were conducted for testing coarse gold.
• Verification of significant intersections is considered to be acceptable due to the quality of
all assay data.
Location of Data Points
• Proposed drillholes were located by GPS before setup and also during actual drilling.
• After completion of drilling, a professional survey team conducted collar pick-ups by
using US made static-triple-GPS, Canadian-made RTK, Leica TCR402 theodolites or
8200-Type GPS receivers periodically
• All downhole surveys were carried out using a single-shot Eastman downhole survey
camera every 50 meters with rods lifted 6 m from the bottom to avoid magnetic
interference
• Before entering onto the database geologists collected all camera shot discs and check
the dip/azimuth against the driller’s measurement
• 1:1,000 scale topographic map was produced at 0.5 m contour intervals from 18,326
points with acceptable accuracy.
Data Density and Distribution
• More than 21,000 samples have been obtained from drilling core and thus data density is
considered sufficient to establish the degree of geological and grade continuity
appropriate for the Mineral Resource estimation procedure and classifications applied.
Sample compositing has been applied to calculations.

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Mineral Resource Estimates
Database
• All geological logging data, surveyed data (collar and downhole survey), measured data
(alpha and beta) were manually entered onto template forms in Excel. Then the raw data
of each drill hole was entered digitally into the Beyinhar drilling data folders with core
photos individually.
• All assay results received from the labs are digitally merged into the database through
developed macro program embedded in Excel.
• All data is lastly stored in an ‘Access™’ database and processed by ‘Datamine Studio™’
software. The database has been validated and independently audited.
Specific Gravity
• 589 SG determinations were conducted on samples from different holes according to
lithology, grade, rock structure, mineral composition and spatial location.
• Determined by weight in air/weight in water method. Cores were routinely coated by
paraffin before immersing in water, however the SG was also checked using the
volumetric method.
• The SG values used in the resource calculation of 2.57 for oxide, 2.63 for fresh and 2.00
for soil and alluvial are considered to be reasonable.
Geological Interpretation
• Beyinhar gold deposit is a largely near-surface, bulk tonnage, low grade style gold
mineralisation hosted in a shear zone in Proterozoic metasediments and Cretaceous
rhyolite.
• Beyinhar gold mineralisation is controlled by the interplay of primary metamorphic fabric,
the massive rhyolite and granodiorite abutting the schists and the Beyinhar shear zone,
structure movements along the Beyinhar shear and oxidation controlled by meteoric
waters.
• The bulk of the deposit occurs in a well-developed oxide zone, which extends in some
areas down to 125 m vertical depth.
• A complete set of 47 cross-sections, spaced 50m apart, and 10 level plans were
interpreted in detail by a team of geologists for the purpose of controlling the
interpolation/extrapolation of grades. The grade polygons were drawn on each section to
outline the mineralisation envelope. In addition, a large number of drillholes were
relogged as part of this interpretation.
• Indicator-modified ordinary kriging was applied through coding 0 or 1 for each geological
variable (eg. - structure or veins) and conducted ordinary kriging to estimate each block.
Then comparing with gold distribution contours, only breccias and veining yield a certain
degree of correlation to gold mineralization. However, it was impossible to wireframe
them in 3D dimensions.
• Detailed exploratory data analysis was carried out in the hope of building up estimation
domains. Although there is a degree of correlation between gold mineralisation and
structures/veins, domains can not be established due to difficulty in the wireframing.
• The principal mineralized structures were outlined as the basis for estimation units
(domains). These outlines are based on 0.2 g/t Au grade envelope in the absence of
highly identifiable and statistically quantifiable geological domains.
• Bottom of alluvial (“BOA”) and bottom of partial oxidation (“BOP”) surfaces were created
based on the logging points in each drill hole and refined through plan and section views.
These two surfaces were then utilized to back-tag the drill holes assays and composites,

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 thus coding the estimation database with the interpreted zone, above and below BOA
and BOP.
• BOT (bottom of drillhole), a fairly smooth surface was drawn approximately 25m from last
sample interval for each drillhole for constraining the extrapolation of gold grade at the
bottom of the model.
• In the oxides, native gold grains (up to 2mm) have been observed as coarse gold grains
along foliation of the schist, in limonite + secondary quartz-filled fractures, in cracks,
microcracks and in limonite-goethite-filled fractures
• In the sulphides, numerous native gold grains occur in particular horizons of laminated
epithermal quartz vein with sizes approximately 2 – 100 microns.
Dimensions
• The overall geometry of the Beyinhar ore body shows moderate dip to the NW, generally
reflecting the contact of the schist with the rhyolite sub-volcanic intrusion.
• Beyinhar gold mineralisation is over 2.2 km in strike length, over 400 m along dipping
direction and drilled to a depth of over 200 m below ground surface and still open.
• Beyinhar gold envelope extends along 45 degree azimuth and dips to 315 degree with
shallow-moderate dip angle (20-45 degrees) in the oxide.
Estimation Methodologies
• Based on the detailed study of gold behavior within gold mineralisation envelope,
Multiple Indicator Kriging (MIK) was selected to estimate grade of each block within the
gold envelope while ordinary Kriging (OK) was applied for the blocks outside the gold
envelope.
• MIK is used when the drill hole grade distribution exhibits a high CV (1.5 and above) and
there is sufficient drill hole information to control grade estimation through the
decomposition of the original grades into bins or indicator classes. Beyinhar deposit is
considered as this type of mineralization.
• 8 indicator thresholds were chosen according to the quantity of metal contained in each
of the 9 classes defined. The thresholds were chosen such that the overall metal content
is distributed approximately evenly among classes. The Au grade thresholds used were
0.25, 0.45, 0.70, 1.00, 1.80, 3.60, 7.00, and 14.00 g/t.
• 9 grade classes were applied during implementation of MIK and a lower average for the
last indicator class was utilized which is a type of capping.
• 2 m long down-the-hole composites were obtained from the original assay data, and
coded using the modeled geology as oxide/primary and as inside/outside the 0.2 g/t
envelope
• Outlier values within the grade envelope were dealt with through the estimation method –
MIK. The portion of the database outside the envelopes was capped to 1.0 g/t for over
1.0 g/t grades.
Modeling Techniques
• Beyinhar solid model was created from wireframing interpreted outlines of BOA, BOP,
0.2 g/t mineralisation envelope on each section after digitizing them into Micromine tm
from paper sections.
• A detailed and comprehensive validation of solid model was carried out through visual
2D/3D screen checking and formula filter checking, prior to a blank block model built up.
• A single large block model combining both grade envelopes and mineralisation zones
was defined for the resource block model of Beyinhar after considering afterwards pit
optimization and mine planning work.

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 • The block size chosen was 20m x20m x6 m, intended to reflect drill hole spacing
available; Sub-blocks were defined using maximum number of 4m x4m x2m, along the
contacts between the BOA, BOP, topography, 25m below of drillhole bottom and 0.2 g/t
mineralisation envelopes. The kriged blocks was discretised using 2x2x2 points within
each block
• 2.0m length downhole samples were extracted or coded from the geological database
within solid model after flagged database using wireframed solid model.
• Classic statistics and variogram analysis for each indicator on the extracted dataset from
database was undertaken.
• Data selection was done using octant searches. Search ranges were determined by
avoiding over-influence of individual drill hole in areas with redundant information.
• Three estimation passes with a varying degree of restrictions were used for the MIK
grade estimation within the envelopes; while only a single kriging pass with a very
restricted search was applied for the estimation of gold grades outside the envelope.
• The resource model gold estimation was validated by plotting a complete set of sections
and visually comparing the estimated block grades with the drillhole data.
Mining and Metallurgical Factors
• Mining assumptions were used during determining block size called the Selective Mining
Unit (SMU). It has assumed that 6 m benches, a minimum mining width of 10m by 10m
are likely to be used. Thus the selective mining unit assumed in this resource model is
10m x 10m x 6m, ie. - a volume smaller than 600 m3 can’t be separated as ore or waste.
In addition, the blocks outside envelope but potentially within open pit were calculated as
inferred resources in this update.
• Metallurgical testwork was carried out principally focusing on oxide mineralization. More
bulk metallurgical samples of primary ore will be collected in the near future for the
purpose of the detailed gold recovery and processing study and determination of process
flowchart.
Resource Categorization
• Resource classification was conducted by a comprehensive approach which combines
an initial computer-kriged method by using search range/the numbers of samples and
followed by a manual interpretation based on (i) geological continuity and (ii) grade
continuity, where possible. The categorization was undertaken by Sino Gold
subsequently, and was provided as the basis for ore reserve estimates.
• Three estimation passes were run using different search ellipse ranges and a minimum
number of samples to estimate a block. These passes were used as initial indicators of
geologic confidence and data density.

Pass Resource Minimum Maximum Search in X, Orient.

No. Category Samples Samples Y, and Z (m) Ellipsoid,
Required Required GSLib Conv.
1 Measured 4 12 35/21/31.5 90/0/-60
2 Indicated 3 12 70/42/63 90/0/-60
3 Inferred 3 12 160/96/144 90/0/-60

• Afterward, on each section, a Competent Person’s judgment was made as to continuity

of both controlling geological structures and of grade. A measured and indicated outlines

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 were digitized on each section and this was used to manually re-categorize any
Measured and Indicated blocks.
Audits and Reviews
• The Beyinhar data and database have undergone internal review and external audit
twice.
• A thorough internal spot-check or validation was carried out before actual interpretation.
The digital database was checked against original gold assay certificates and geology
logging sheets.
• Mario Rossi, a consultant geostatistician mentioned above, conducted a site visit and
independent audit by checking logging sheets, assay certificates and re-sampling/re-
assaying.
• This resource estimate was undertaken independently by Mario Rossi as presented and
described herein. Sino Gold and Golden China ran an in-situ Ordinary Kriged estimate in
parallel as a check on the MIK estimates.
• The structural geological controls, contained in the geology model, was reviewed and
improved by a consultant structural geologist – Dr David Gray, of GeoStructures
Consulting. The geologic model was also reviewed by Sino Gold staff. The model was
generally found to be an appropriate representation of geological controls on gold
mineralisation, and therefore considered robust as the basis for resource estimates.
Risks
• As mentioned above, at current 50m drill spacing and complexities of gold mineralisation
in the oxide zone, there is some element of risk that the current 0.2g/t Au envelopes
accurately reflect all mineralisation controls in the oxide zone. Further infill drilling of the
oxide Indicated Resource will be considered for upgrade to Measured to improve
confidence
• The grade of nugget gold mineralisation in the oxide zone could possibly be improved by
bulk cyanide leach analysis.
• The gold sampling and assaying protocols can be further optimized by conducting
heterogeneity test, initially on oxide ores then on sulphides later, as suggested by Mario
Rossi.
• Additional metallurgical testwork is required on the sulphide material, as is additional
deep drilling to better understand the geometry of the epithermal quartz veins hosting
high-grade gold.
Resource Potential
• Gold oxide resource – an exploration program is planned in 2008 to extend the oxide
mineralisation to the SW and NE along the Beyinhar Shear Zone. This program will
comprise soil geochemistry, ground electrical geophysics (Induced Polarization) and
diamond and/ or RC drilling.
• Sulphide resource – only limited drilling has intersected the sulphide mineralisation
identified below the oxide resource. High grade gold mineralisation occurs in epithermal
quartz veins, apparently related to the sub-volcanic rhyolite intrusion. In 2008 an
extensive diamond drilling program will be aimed at extending this gold-sulphide
mineralization.
• Silver resource – only a few holes were analyzed for silver although the oxide
metallurgical test suggests up to 33 g/t Ag returned from the same sample with 1.66 g/t
Au head grade.

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Ore Reserve Estimates
The Ore Reserve estimate is based on detailed geology, rigorous modelling and estimate
methodologies, that are described below.
The Ore Reserves estimate is based around a crushed ore, heap-leach plant and open pit
mining scenarios.
General Parameters Utilised for Ore Reserve Estimates
The cut-off grades for this Beyinhar reserve estimate are based on:
• a gold price of US650/oz; and
• Processing costs and recoveries estimated by Kappes, Cassiday and Associates
Australia Pty Ltd.
The cut-off grades are break-even grades, at which total processing cost is equal to the value of
the recoverable gold metal.
Cut-off grades were calculated at 0.22g/t and 0.25g/t gold for the surface soft oxide ore and the
deeper hard oxide ore, respectively.
Open Pit Optimisation
Orelogy Limited performed the pit optimisation work, using Whittle 4X optimisation software. The
selection of an optimal shell for design purposes was based on both maximisation of open pit
discounted value and maximisation of the resource utilisation.
Overall wall slope angles and other geotechnical parameters for the optimisation and pit design
were recommended by George, Orr and Associates.
Contract mining costs have been used and are based on quotations received from major
Chinese mining contractors.
Open Pit Design
Orelogy planned three-stages for the open pit operation. The ultimate pit design is shown in the
figure below.

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Ore Reserves
Ore Reserves for the ultimate pit are summarised in the table below. Total Ore Reserve is 21.4
Mt at 0.72g/t for 499,000 ounces of gold insitu. Total recovered ounces are 421,000 ounces with
7% being in the Proven category and the remainder being in the Probable category.
Category Weathering Cut- Tonnes Grade Insitu Process Recovered
off (kt) g/t Au Ounces Recovery ounces
grade

Proven Soft Oxide 0.22 783 1.10 27,734 90% 24,961

Medium 0.25 173 0.98 5,423 80% 4,338
Oxide 0.25 72 0.89 2,070 80% 1,656
Hard Oxide
Sub TOTAL 1,028 1.07 35,227 30,955

Probable Soft Oxide 0.22 8,101 0.75 194,350 90% 174,915

Medium 0.25 6,912 0.67 147,913 80% 118,331
Oxide 0.25 5,398 0.70 121,259 80% 97,007
Hard Oxide
Sub TOTAL 20,411 0.71 463,523 390,253
TOTAL 21,439 0.72 498,750 421,208

Total material moved from the ultimate pit is slightly higher than the optimal shell on which the
design is based. Strip ratio is 2.0 to 1, excluding Inferred materials.
A dilution factor of 5% and an ore loss factor of 5% have been applied.

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