CGG China Gold International Resources Corp Ltd

Cash Costs Decrease. Operating Income, Net Income and EPS grows. CSH receives Prestigious Award.

VANCOUVER, May 15, 2013 /PRNewswire/ - China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx: 2099) (the "Company" or "China Gold International Resources") is pleased to report financial and operational results for the three months ended March 31, 2013 ("Q1", "quarter" or "first quarter 2013") and reconfirms its 2013 outlook.

First Quarter 2013 Financial Highlights

• Consolidated revenues of US$76.7 million for the first quarter ended March 31, 2013 were consistent with US$77.6 million earned in the first quarter ended March 31, 2012.
• Revenues from the Chang Shan Hao Gold Mine (the "CSH Mine", the "CSH Gold Mine" or "CSH") accounted for 62%, or US$47.4 million (Q1, 2012: US$54.5 million), of total revenue for the quarter.
• Revenue from the Jiama Copper-Gold Polymetallic Mine (the "Jiama Mine" or "Jiama") accounted for 38%, or US$29.3 million (Q1, 2012: US$23.1 million), of total revenue for the quarter.
• Cost of sales of US$47.5 million for the quarter ended March 31, 2013, decreased by US$4.7 million, from US$52.2 million for the quarter ended March 31, 2012.  The decrease in cost of sales is primarily attributable to CSH's reduction of waste rock removal expenditures, in addition to the optimization of ore processing at both mines. Cost of sales as a percentage of revenue for the Company decreased to 62% from 67% for the three months ended March 31, 2013 compared to 2012.
• Mine operating earnings of US$29.3 million for the quarter ended March 31, 2013 increased by 15%, or US$3.9 million, from US$25.4 million for the quarter ended March 31, 2012. Mine operating earnings as a percentage of revenue increased to 38% from 33% for the three months ended March 31, 2013 compared to the three months ended March 31, 2012.
• Income from operations of US$22 million for the first quarter of 2013, increased by 13%, or US$2.5 million, from US$19.5 million for the first quarter of 2012.
• Net income of the Company increased by US$1.6 million to US$15.1 million for the three months ended March 31, 2013 from US$13.5 million for the three months ended March 31, 2012.
• Earnings per share of the company increased by 12% to 3.66 cents per share for the three months ended March 31, 2013 from 3.27 cents per share for the three months ended March 31, 2012.

First Quarter 2013 Production and Operating Highlights

• Gold production at the CSH Mine decreased by 5% from 33,830 ounces for the three months ended March 31, 2012 to 32,163 ounces for the three months ended March 31, 2013. The major reasons for the decrease in production are decreased gold grade in the pregnant solution in the processing cycle, and lower grade ore being placed on the leach pad during the first quarter of 2013 as compared to the same period in 2012.
• The total production cost of gold per ounce and cash production cost of gold per ounce for the three months ended March 31, 2013 both decreased compared with the same period in 2012. The primary reason is lower waste rock removal expenditures, which are included in production cost in 2013, compared to the same period in 2012.

• Copper production from the Jiama Mine significantly increased by 62% from 1,900 tonnes (4,187,887 pounds) during the three months ended March 31, 2012 to 3,083 tonnes (6,797,439 pounds) during the three months ended March 31, 2013. The significant increase in production mainly resulted from an increased volume of ore processed and improved copper grade during the quarter.
• Total production cost and cash production cost of copper per tonne and per pound both decreased due to the improvement in the ore grade during the period. The Company is closely monitoring production costs at the Jiama Mine and will continue to make efforts to reduce costs.

The Company reaffirms 2013 outlook

• Expected production of 145,000 ounces of gold from the CSH Mine in 2013.
• Expected production of 26.5 million pounds of copper from the Jiama Mine in 2013.
• At CSH, the Company is building a new 30,000 tpd stand-alone crushing, heap leaching and ADR (Absorption, Desorption and Refining) plant system in addition to the existing 30,000 tpd facility. Expansion construction is expected to be completed in the fourth quarter of 2013.
• The Company expects to complete the Jiama Mine's Phase II Independent Feasibility Study and to release an updated NI43-101 compliant report in the second quarter of 2013.
• Jiama's production capacity expansion will happen in two stages. Stage one, planned for completion during the fourth quarter of 2013, includes completion of a new 20,000 tpd mill. Stage two is expected to be completed by 2014. By 2015, Jiama is expected to reach its planned full capacity of 40,000 tpd of ore.
• The Company plans to drill approximately 30,000 meters at the Jiama Mine during 2013.
• The Company will continue to leverage the technical and operating experience of the Company's controlling shareholder, China National Gold Group Corporation ("CNG"), to improve operations at its mines, increase production and minimize costs.
• To fulfill its growth strategy, the Company is continually working with CNG and other interested parties to identify potential international mining opportunities, mainly outside of China, which can be readily and quickly brought into production with the possibility of further expansion through continued exploration.

2013 Award - CSH Received "China Top 10 Major Mineral Exploration Achievements" Award

On January 14, 2013 in Beijing, China, the Geological Society of China announced its "Top 10 Geosciences and Technology Breakthrough of Year 2012" and "Top 10 Major Mineral Exploration Achievements of Year 2012" awards.  The exploration program named "Detailed Exploration on East and West Wings of CSH" which was undertaken by China Gold International Resources and its subsidiary Inner Mongolia Pacific Mining Co., together with Jinyou Geological Exploration Co. was nominated as one of the "Top 10 Major Exploration Achievements".

The program commenced in March 2011 and ended in April 2012. Utilizing advanced drilling equipment and high precision deviation control technology, the exploration program was carried out in strict compliance with both Chinese and international technical standards. A total of 43 drilling rigs were deployed during the exploration campaign, completing 58,170 meters of drilling over 101 boreholes, at a cost of US$8.5 million. Three resources update reports were completed and approved by relevant authorities based on the exploration outcomes. The potential resource increase from this exploration program marks a major step forward in the exploration and exploitation of low grade gold deposits.

About China Gold International Resources

China Gold International Resources Corp. Ltd. is based in Vancouver, BC, Canada and operates both profitable and growing mines, the CSH Gold Mine in Inner Mongolia, and the Jiama Copper-Polymetallic Mine in Tibet Autonomous Region of the People's Republic of China. The Company's objective is to continue to build shareholder value by growing production at its current mining operations, expanding its resource base, and aggressively acquiring and developing new projects internationally. The Company is listed on the Toronto Stock Exchange (TSX: CGG) and the Main Board of The Stock Exchange of Hong Kong Limited (HKEx: 2099).

For a detailed look at the financial statements and MD&A for the quarter ended March 31, 2013, please visit the Company's website at www.chinagoldintl.com, The Stock Exchange of Hong Kong Limited's website at www.hkex.com.hk or SEDAR at www.sedar.com.

Cautionary Note About Forward-Looking Statements

Certain information regarding China Gold International Resources contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although China Gold International Resources believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. China Gold International Resources cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what China Gold International Resources currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.

SOURCE China Gold International Resources Corp. Ltd.