The Sydney Mining Club November 2004The Sydney Mining Club November 2004

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IntroductionIntroduction

• Tianshan Goldfields Limited (ASX:TGF) is earning a controlling interest in the Gold Mountain Project in North West China

• TGF offers:

– Experienced management– World class location– Multi-million oz potential– High production potential– Leverage is in exploration– Aggressive activity program– New project pipeline

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Corporate Corporate StructureStructure

• Leveraged Capital Structure:

– Attractive market capitalisation of A$13m– Tight shareholder base with top 20 holding over 62%

• Prominent reputable management team has proven market and resource company management experience:

– Warwick Grigor (Chairman)– Keith Liddell (Executive Director)– Grant Thomas (Exploration Director)– Dr Shuang Kui Ren (Consultant)– Mark Bolton (Company Secretary)

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Significant Significant ShareholdersShareholders

NumberShareholder (million)Mineral Securities Limited 8.500 13.6%ANZ Nominees 7.12511.3%Westpac Custodians Nominees 3.8366.1%HSBC Custody Nominees 3.2005.1%Macquarie Bank 2.200 3.5%Australian Heritage Group 1.6002.6%National Nominees Limited 1.4862.4%Zie Zhong 1.2762.0%Julie Grigor 1.2572.0%Gregorach Pty Ltd 1.1401.8%

Total Top 10 Shareholders 31.62050.4%

Total other shareholders 31.116 49.6%

TOTAL SHARES ON ISSUE 62.736 100.0%

(As at 19 October 2004)

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Gold Mountain Stop PressGold Mountain Stop Press

• 2004 exploration results confirm that the Jinxi-Yelmand prospects sit in a large gold mineralised system within a 3.5km diameter caldera

• Gold mineralisation model is analogous in style to Barrick Mines’ Peruvian Alto Chicama gold project (7.2m oz)

• These systems, including the Jinxi-Yelmand target, are typically:

– extensive near surface blankets of disseminated gold mineralisation in breccias

– underlying the blankets are high grade feeder structures (like Arxi Gold Mine - 3.8 million oz reserve only 10km SE of Jinxi)

• All drill holes assayed to date from 2004 programme have gold mineralisation

• Assays from the remaining 10 holes and 473 surface samples awaited - two holes from Jinxi have intersected very wide breccia zones

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Local Operating ExpertiseLocal Operating Expertise

• For the past several years Grant has held senior positions with Rio Tinto Exploration (Brazil and China)

• Prior to his role in Brazil, Grant was Country Manager and Chief Representative for Rio Tinto Mining and Exploration (China) in Beijing from 1997 to 2000. In China Grant managed a team of Chinese geologists exploring for gold, copper, coal and base metal mineralization in various geological terrains

• Grant successfully negotiated Rio Tinto Mining and Exploration’s first Project Establishment in China as well as negotiating the first exploration licenses in China (Xinjiang province)

• Prior to China, Grant was Manager Exploration for Hamersley Iron Resources Task Force

Grant THOMAS (Exploration Director – TGF)(General Manager – Gold Mountain JV)

Grant was Country Manager and Chief Representative for Rio Tinto Mining and Exploration (China) in Beijing from 1997 to 2000

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Gold Mountain ProjectGold Mountain Project

Diamond drilling at the Jinxi Prospect in July 2004 showing three rigs on the 10025N line and two rigs to the north on lines 10050N and 10100N. Looking north

Grant Thomas - Exploration Director

• Project history

• Outstanding location

• Efficient operating environment

• 2004 Programme highlights

• Discovery of a substantial gold system

• New project pipeline

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Project HistoryProject History

• Chinese exploration and research parties discovered Jinxi, Yelmand and the Arxi gold mine (3.8m oz reserve) in Carboniferous Tulasi Basin in the mid 1990’s

• WMC began exploring the Tulasi Basin in 1996 and drilled 8 diamond core holes (1,741m) at Jinxi-Yelmand, 7 gold mineralised

• WMC withdrew 2001, concluding Jinxi-Yelmand target prospective for 80Mt at >1.0g/t Au

• Chinese parties continued exploration by developing adits at Yelmand and Jinxi and conducted small scale mining at Yelmand and Jinxi

• Mineral Securities Limited took an interest in the property in late 2002, and Xinjiang Gold Mountain Company Limited (“XGM”) joint venture company was formed in 2003

• TGF acquired its interest in 2003, and XGM began a limited test drilling programme late in 2003 (1,297m)

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Outstanding LocationOutstanding Location

• Resource rich Xinjiang Province in NW China

• Established infrastructure including international airport and hotels, national highways and rail links

• Ready road access to project areas located in undulating grasslands at 1,200m to 2,000m

• On site water supply and power from the grid nearby

• Adjacent operating gold mine (3.8m oz Au reserve)

YiningUrumqi

(Yining: >300,000 population)

Yin

ing (

40km

)

GoldMountain

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Efficient Operating Efficient Operating EnvironmentEnvironment

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Photo GalleryPhoto Gallery

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2004 Project Highlights2004 Project Highlights

• Large near surface disseminated blanket with potential for 80Mt @ >1.0g/t Au at Jinxi-Yelmand

• Analogous to major discoveries in South America and USA – Yanacocha (34Moz), Pierina (8Moz), Alto Chicama (7Moz), and Hollister (3.8Moz)

• Potential for high grade feeder structures below the blanket to be targeted in possible veins, intrusion stockworks and siliceous breccia pipes

• Project status:

– major drilling programme completed in 2004 (5,756m) has defined the first two targets for resource drill-out

– pipeline of regional targets similar to Jinxi-Yelmand

– further tenement acquisitions underway

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Jinshan West

Jinshan

Gold Mountain – Regional Gold Mountain – Regional ContextContext

YelmandJinxi

Jinshan West

Jinshan

Arxi Gold Mine

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Jinxi – Yelmand Caldera Jinxi – Yelmand Caldera A A Large Gold Mineralised Large Gold Mineralised SystemSystem

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Extensive Near Surface Extensive Near Surface Blanket of BrecciasBlanket of Breccias

• Gold mineralisation blanket grading 0.5-2.0g/t Au with high grade intersections to 7g/t Au

• Disseminated high sulphidation system in breccias• Coeval with rhyolite volcanism and high angle faulting

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Jinxi ProspectJinxi ProspectSchematic Cross SectionSchematic Cross Section

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Gold Mineralised BrecciaGold Mineralised Breccia

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Jinxi Drill IntersectionsJinxi Drill Intersections

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Drill ResultsDrill Results

• Pre 2004 Drill Intersections– TULD 3129m @ 2.04g/t Au– TULD 825m @ 2.41g/t Au– Adit 1 56m @ 2.86g/t Au

incl 25m @ 5.13g/t Au– XGD1A 117m @ 1.96g/t Au

• Significant 2004 Drill Intersections

– JX 10 30m @ 1.26g/t Au– JX 17 20m @ 1.95g/t Au– JX 19 38m @ 1.17g/t Au

27m @ 4.03g/t Au

incl 11m @ 7.33g/t Au

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Analogous DepositsAnalogous Deposits

Source: Great Basin Gold

Examples of world class high sulphidation systems

• Yanacocha (Peru) 1335Mt @ 0.8g/t Au (34Moz)

• Pierina (Peru) 8Moz

• Alto Chicama (Peru) 159Mt @ 1.04g/t Au (7.2Moz)

• Hollister (USA) 80Mt @ 1.04g/t Au (2.8Moz)

0.7Mt @ 40g/t Au (1.0Moz)

• High Grade feeder veins a priority target below blanket

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Regional TargetingRegional Targeting

• Mayituobi - a Jinxi–Yelmand lookalike, with surface colormetric assays to 3g/t Au

• Kezele – 1-2km south of Jinxi-Yelmand within another caldera system, with surface samples to 2.5g/t Au

• Chart – new zone located in the Jinshan NW target, with coincident IP anomaly

• Further prospects under negotiation

Active project pipeline delivering early results:

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SummarySummary

• Low market capitalisation with tight shareholder base – highly leveraged results

• The Project is lead by an experienced Australian and Chinese geological and corporate team

• Gold Mountain Project has multi-million ounce resource potential - located in the world class Tianshan Gold Belt in an established gold producing area

• Multiple mineralised gold targets (early stage and advanced)

• Ten 2004 drill hole assay results expected shortly

• Active prospect pipeline delivering early results

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QuestionsQuestions