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3 February 2005 SYDNEY MINING CLUB SYDNEY MINING CLUB

3 February 2005 SYDNEY MINING CLUB. DISCLAIMER The information contained in this presentation has been prepared using the information available to Sino

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3 February 2005

SYDNEY MINING CLUBSYDNEY MINING CLUB

DISCLAIMER

The information contained in this presentation has been prepared using the information available to Sino Gold Limited (Sino Gold) at the time of preparation of the presentation.

External or other factors may have impacted on the business of Sino Gold and the content of this presentation since its preparation. In addition, all relevant information about Sino Gold may not be included in this presentation.

Accordingly, you should not rely on the content of this presentation in relation to any further action including investment in Sino Gold.

For further information about Sino Gold, you can obtain a copy of all recent ASX announcements made by Sino Gold at www.sinogold.com.au.

Any person considering an investment in Sino Gold is advised to obtain independent financial advice prior to making an investment decision.

2005 - year of the rooster

The roosters 1933, 45, 57, 69, 81 or 93 Outstanding performers – shine when centre of attention

What to expect nonsensical plans with simple things made complicated overconfidence and disappointments hard-line politics

The best strategy do not fuss keep your eyes open and mouth shut stick to practical and proven paths check all facts and figures avoid speculative ventures

China - the case for consolidation

China’s Major Gold Deposits

Sino Gold plans to rule the roost

The world’s 4th largest gold producer …

• Fractured, small scale operations Average production approximately 16,000oz pa No comprehensive development plan Mining by explorers with orebodies mined to provide cashflow Hand-to-mouth existences Little attention to safety and environment No exploration expenditure Few lasting community benefits

• Little modern exploration carried out

• Geological prospectivity is high Country structural issues are the main inhibitor to development Ranked 10th (top quartile) on Fraser Institute 2003 survey

• Projects to be fully funded• Overall development plans to be implemented• Modern and efficient processes to be used• Systematic extraction of deposits through planned and coordinated operations• Safety and environmental standards to improve• Ongoing exploration expenditure to occur• Profitable operations to deliver social benefits

Government slogan “Scientific development”

Ideally, what is required …

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Foreign Direct Investment

Largest recipient of FDI globally

Other industries are receiving investment

USA

China <1%Rest of World

Pacific/SE Asia

Africa

Australia

Latin America

Canada

Global Exploration Expenditure

Less than 1% of FDI into mining

The mining industry is missing out

• Combine economic growth with social progress

• Promote coordinated, balanced development

• Aim to eliminate regional disparities – “Go West”

• Eliminate waste of resources

• Minimise environmental damage

• Sustain economic development

Chinese Government policy and direction

MLR 2004 White Paper supports consolidation and foreign investment

• Similar to Australia in 1970/80s – largest

operation (1974) Tennant Creek 171,000oz p.a

• 4-5 growth oriented, well capitalised groups

• 2-3 may well be Chinese

• Sino Gold will be there unique platform 10 years experience in China world class asset being developed intermediate scale gold production strong operating cash flow

What will emerge?

JINFENG is no turkey

                                          

37 Global Development Assets > 3.5m oz

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Jinfeng

Hatching a big one

19 deposits not held by majors and a number are not being developed due to social, environmental

or economic issues

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Hatching a big one

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Jinfeng

Telfer

Hatching a big one

2 development deposits >3.5M ozs not held by majors in Australiasia

Jinfeng is one of them

Jinfeng project overview

refractory ore type, using Biox®

process, ~85% recovery 12 year mine life capital cost approx. US$70M operating costs approx. US$183/oz US$40 million project loan facility finalised – Stand Bank & HVB

1.2 million tpa, approx. 180,000oz pa Ore Reserves of 2.1Moz

– 88% conversion ratio ~1Moz in open cut; 1.1Moz from

underground Aug grade 5gpt Mineral Resources of 3.5Moz

upgrade of ~1.1Moz Inferred expected Likelihood of more at depth

• Equity of 82% in project

• Will be China’s second largest gold mine

• Phase 1 gold production in mid-2006

Jinfeng has entered the development & construction phase

Jinfeng phase 2 expansion study

• Scoping study completed by Ausenco• U/G development brought forward to start

year 2 (end of commissioning year)• Plant upgrade from 1.2Mtpa to 1.8Mtpa at

cost of US$14 million (±30%)• No increase in operating costs per tonne• Gold production of approx 300,000oz pa from

open pit and underground

Will be China’s largest gold mine

Jinfeng project timetable

All Development Permits complete

Relocation of Affected Families complete

Access Road Upgrading commenced

Evaluate Site Earthworks Tenders commenced

Start Construction Q1 05

Complete Detailed Design Q2 05

First Gold Pour mid-06

Ramp-up to Design Capacity end-06

• Over 50,000m of diamond drilling completed

• Deposit defined over 750m strike length and to 700m depth

• Average true thickness of 11m but is up to 30m thick

• Contained gold ranges between 5,000 and 7,000oz per vertical metre in the well-defined central part of the deposit

• Geometry controlledby structural framework

• Single mineralisationevent with high grade continuity and low nugget effect

• F3 fault is dominant ore domain

• Largest domains at F2-F3 fault intersection

• F3 splays (eg F20) aresecondary mineralised structures

• Open at depth 700m below surface, plunging to ESE

Jinfeng is a world-class deposit

Jinfeng’s “Deep-East” extension

• Deep potential shown by strong intensity and widening anomalous arsenic values (shown by green lines)

• Broad arsenic zone outlines fluid flow and structurally controlled Au (in red lines)

• Drill rig being mobilised

Aero-Magnetics with Geological InterpretationTrenching Samples • 442km2 ground contracted in JV’s

• Geological mapping, geochemical sampling and ground geophysics is focused on near-mine prospects

• Extensive regional database being built

• US$2M exploration program underway

Jinfeng’s near-mine opportunities

• Series of “near-mine” targets within the structural corridor

• High-grade trench values indicate immediate drill targets

• Series of “near-mine” targets within the structural corridor

• High-grade trench values indicate immediate drill targets

• Targets => anomalous geochemistry (up to 1.2gpt Au), rock chips and some IP

• Strongly anomalous gold soil geochemistry on dome contact to be investigated

Soil Geochemistry

Exploration focus on supporting decisionto proceed with Phase 2

Sino Gold’s pipeline strategy

JCL(86%)

JINFENG(82%)

Operation

Development

Exploration

WHITE MOUNTAIN SE GUIZHOU

SHANDONGCHINA REVIEW

• Unique country franchise 1st mover advantage

• World class Jinfeng deposit Currently 3.5Moz and potential for much more

• Jinfeng Phase 1 to generate approx US$25-30M p.a operating cash flow Phase 2 to generate approx US$45-50M p.a operating cash flow

• Portfolio of exciting assets able to continue growth

Sino Gold in summary

SINO GOLD - the only substantial foreign producer in the world’s 4th largest gold producing country

Finally, Sino Gold’s advice about China …

Never

Winston ChurchillWinston Churchill

Never

Never

Give Up!