Drilling Report

RNS Number : 0169B
Tianshan Goldfields Ltd
11 August 2008

Tianshan Goldfields Limited
("Tianshan" or the "Company")

gold mountain project, china - regional exploration update

* A planned 15,000 metre drilling campaign underway at the Gold Mountain, Nalensayi and Talede tenements, part of the Company's
90%-owned Gold Mountain Project in China
* Drilling underway at the Yelmand deposit targeting resource extensions.
* Regional mapping and sampling of priority targets has defined several highly prospective targets worthy of drill testing.
* Drilling of these priority targets will commence in the September quarter.
* Assay results received for 2,529 samples, with 909 sample results pending.

Tianshan is pleased to provide an update on its 2008 regional exploration program at the Company's 90%-owned Gold Mountain Project in
northwest China, which currently comprises Measured, Indicated and Inferred Resources totalling 94.8 million tonnes at 0.9 g/t gold for 2.64
million contained ounces.

In 2007, a successful exploration campaign identified 31 anomalous targets within the Company's 12 granted tenements which cover a
combined area of approximately 609.5km2. Initial exploration efforts focused on three tenements in the Project area - Gold Mountain,
Nalensayi and Talede - where follow up mapping and drilling was recommended at prospects identified in 2007, namely Tekexi, Jin Gu and
Awuliya.

To date, work has involved extensive prospect scale geological mapping and sampling, together with the acquisition of regional airborne
magnetic data covering the Tulasi Basin and ASTER imagery which has assisted the interpretation of the detailed ground magnetic data
acquired in 2007. This data set has proven invaluable in interpreting key structures that appear, from recent reconnaissance mapping, to
control mineralisation.

To date 3,438 regional samples have been collected and processed with results for 2,529 samples returned. A complete assessment of the data
sets is awaited and a summary of results received to date is provided below:

Gold Mountain
Detailed geological mapping, with emphasis on structure and alteration, has commenced over the four key resources with results to be
incorporated in the evolving model for mineralisation in the Tulasi Basin.
The results of an orientation Mobile Metal Ion (MMI) soil sampling programme to detect low-level gold values in the upper organic layers
of loess cover concealing mineralisation at depth await review and possible application as a valid field exploration tool for the vast areas
of prospective lithologies concealed by loess.

Jilande
Prospect mapping has commenced in the Jilande area, which is located 3km east of Mayituobi, returning encouraging results from sampling
along seven lines across zones of hydrothermal breccia (BXH) exposed along what appears to be a thrust contact with the basement limestone
as well as a N-S aligned feeder structure.

The best result from rock chip sampling to date returned 4m @ 1.04g/t Au and 9m @ 0.2 g/t Au in the breccias. Other results included 4m
@ 0.28 g/t and 2m @ 0.65g/t Au in a north-south structure.

The BXH is very similar in appearance to Yelmand and Mayituobi and carries similar grade on exposed outcrops. The main difference is
that it is vertical to sub vertical in places, and appears to become thicker with depth as a result of erosion at the surface. Jilande
exhibits structural complexity, with small north-south structures cutting across the mineralised zone at 4 to 5m intervals. These structures
contain the higher-grade results, with up to 3.3g/t gold reported. Complete assay results are awaited and this target, which has a
potential strike length of 2km, will be drill tested in Q3 2008.
North Kezele
Geological mapping on the northern area of Kezele has located a siliceous zone extending north from DD07KEZ007 striking northwest. The
zone extends over 2km of strike with the limonitic and siliceous alteration at some locations in the order 30-50m wide. The zone could be
associated with a northwest striking fault in tuffaceous sandstone and conglomerate. Eleven rock chips sampled returned up to 0.22g/t Au.
The zone warrants further investigation.
Chart
Further mapping and sampling was undertaken at Chart and areas to the south. Results reported on five rock chip traverses reported weak
mineralisation in altered volcan-oclastics in the order of 0.1 to 0.2g/t gold over zones up to 3m wide. A single traverse reported 4m at
1.05g/t gold in rock chips. This zone will be further evaluated.
Future targets - Gold Mountain

In the near future targets 3 to 7, in catchments which display good Bulk Leach Extractable Gold (BLEG) gold drainage anomalies and are
coincident with anomalous magnetic features and ASTER anomalies notably target 7 will be evaluated. The Mint Valley, target 6 is complex,
but with the positive drill intersection last year in DD07JIN003 returning 3 metres at 1g/t gold at shallow depth the prospect warrants
further work.

A Geological model that fits lithologies of the Tulasi Basin with structures interpreted from geophysical data and observed during the
recent exploration mapping has been devised. This will form the basis to guide future exploration and has highlighted the prospectivity for
the andesites to host mineralisation where they occur close to north-south structures/feeder zones.

Nalensayi

Extensive prospecting, mapping and sampling of the Tekexi, Awuliya and Jin Gu prospects have been completed. Results for some 2,011
assay samples have been returned to date. Some 12 targets, Tek 1 to 12, were selected for follow up in the wider Tekexi area based on
structural analysis and observed alteration. Recent results highlight a wide gold anomalous zone at Tek 10 (30-50m wide) with values up to
0.5g/t gold. At Tek 10, 40% of the samples are anomalous in gold, from 6 sample traverses. Smaller zones of similar mineralisation occur at
at Tek 2, 9 &12.
It is hoped the alteration zones at Tekexi increase in grade with depth, as the typical strong argillic alteration with low grade and
quartz veins is associated with gold mineralisation in rocks exposed in areas of the lowest relief (in creeks).

Detailed mapping and sampling is also required at Jin Gu and along a major structure to the north of Awuliya, where two additional
alteration zones have been located. Jin Gu will be further drilled in 2008 to test the alteration zone evident at creek level. The hole will
be collared at a different orientation to the hole DD07JIN001 that returned 1.68g/t Au over 2m at a depth of 59 metres.

Talede

Follow up work commenced on the Talede tenement at 10 BLEG anomalies reported from the 2007 exploration campaign. Reconnaissance mapping
has revealed the presence of a large alteration system at Kuerareke, approximately 600m x 200m in size. This alteration zone and a similar
one to the northeast, appear to be located on a northeast trending (S1) structure. This structure, which controls these two alteration
zones, is of particular interest as it appears to have been very active and could well be responsible for explaining the extensive but
moderate tenor BLEG anomalies.

Tenement Status

Renewal reports have been written and accepted by MOLR and BOLR for the seven regional tenements, not including Gold Mountain. Formal
renewal, for a further two years, of all tenements has been received with the exception of Naogaitu which was surrendered in the current
month. A renewal report for the Gold Mountain tenement was written, submitted and accepted by the authorities.

Tianshan will continue the aggressive regional exploration program in parallel with the Pre-Feasibility Study on its current resource
base, which is scheduled for completion during Q3 of 2008. The Company is aiming to complete a Full Feasibility Study by Q1 of calendar 2009
as the basis for a low-cost, open pit mining development.

Mr SA Allnutt (MAIG), Chief Geologist of Tianshan Goldfields Limited compiled the technical aspects of this report relating to the Gold
Mountain Project. Mr Allnutt has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity that is being reported on to qualify as a Competent Person as defined in the 2004 Edition of the
Australasian Code for Reporting of Mineral Resources and Ore Reserves. Mr Allnutt consents to the inclusion in the report of the matters in
the form and context in which it appears.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Tianshan Goldfields LimitedLevel 22, Allendale Square77 St Georges
TerracePerthWA6000Telephone:
+61 8 9221 7729Fax:
+61 8 9221 7866 Keith
Liddell- ChairmanJason Bontempo - Chief Financial Officer WH
Ireland Limited11 St James*s SquareManchesterM2 6WHUnited
KingdomTelephone:
+44 161 8322174 David YoungmanKaty Mitchell

This information is provided by RNS
The company news service from the London Stock Exchange

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