09:42     ZIJIN MINING<02899> - Announcement (2)                              

    Consideration                                                             
    According to the construction plan, the total estimated construction      
    cost will be RMB700 million to RMB800 million. Except for Bayannaoer      
    Zijin's registered capital RMB250 million, the company will make          
    financial arrangement with bank(s) for the balance of the investment.     
    The shareholders of Bayannaoer Zijin agreed to take up the financial      
    burden of this project on shareholding proportionate. The Company         
    holds 60% shareholding of Bayannaoer Zijin and will take up RMB330        
    million (HK$311,320,754 equivalent) as maximum financial burden by        
    means of guarantee, Gansu Jiangxin holds 30% shareholding of              
    Bayannaoer Zijin and will take up RMB165 million (HK$155,660,377          
    equivalent) as maximum financial burden by means of guarantee, and        
    Gansu Yate holds 10% shareholding of Bayannaoer Zijin and will take       
    RMB55 million (HK$51,886,792 equivalent) as maximum financial burden      
    by means of guarantee. All parties do not have any further financial      
    commitments in this project.                                              
                                                                              
    REASONS FOR THE PROPOSED TRANSACTION                                      
    The Company is principally engaged in the exploration, mining,            
    production, refining and sale of gold and other mineral resources in      
    the PRC. As a result of the Proposed Transaction, the Company may         
    have an opportunity to expand in the refinery and development of          
    mineral resources in the northwestern parts of the PRC. Therefore,        
    the Directors consider that the Proposed Transaction and the terms of     
    the Joint Venture Agreement are in the fair and reasonable interest       
    of the Company and its shareholders as a whole.                           
                                                                              
    GENERAL                                                                   
    The Directors noted that this disclosable transaction needed to be        
    disclosed promptly. The delay in disclosure of the transaction and a      
    disclosure of the transaction to media prior to a formal announcement     
    have constituted breaches of the Listing Rules 14.34, and 13.09. The      
    Stock Exchange reserves the rights to take appropriate actions            
    against the Company and/or the Directors in respect of the breaches       
    of the Listing Rules.                                                     
                                                                              
    A circular containing, amongst other things, further details              
    relating to the Proposed Transaction will be dispatched to the            
    shareholders of the Company as soon as practicable.                       
                                                                              
    As at the date of this announcement, the Board of Directors of the        
    Company comprises Messrs. Chen Jinghe (Chairman), Liu Xiaochu, Luo        
    Yingnan, Lan Fusheng, and Roa Yimin as executive directors, Mr. Ke        
    Xiping as non-executive director, and Messrs. Yang Dali, Yao Lizhong,     
    and Loong Ping Kwan as independent non-executive directors.               
                                                                              
    By Order of the Board of Directors                                        
    Zijin Mining Group Company Limited                                        
    Chen Jinghe                                                               
    Chairman                                                                  
                                                                              
    21 April 2005 Fujian, China.                                              
                                                                              
      * For identification purpose only