CGM.L Regulatory News (CGM)

China Goldmines plc ('the Company')

Notice of Annual General Meeting

New Investing Policy

Annual General Meeting

China Goldmines announces that the Company's Annual General Meeting will be held on Thursday 16 December 2010 at 10:00. The meeting will be held in the offices of Brewin Dolphin Limited, 12 Smithfield Street, London, EC1A 9BD.

New Investing Policy

AIM Rule 15 states that where the effect of a proposed disposal is to divest an AIM company of all, or substantially all, of its trading business, activities or assets that AIM company will, upon completion of the disposal, be treated as an investing company and must therefore provide shareholders with details of its investing policy to be followed going forward, which must be approved by shareholders.

The Company's Investing Policy is set out below and requires the approval of Shareholders at the AGM.

The Company's proposed Investing Policy is to create shareholder value by identifying and acquiring holdings in businesses and ventures active in natural resources with a particular focus on the minerals (including industrial minerals) and metals sectors. The Company expects to be an active investor but it will depend on the terms of each transaction.

Investments made by the Company will include but will not be limited to:

·; Funding "brownfield" developments in conjunction with expanding and/or rehabilitating existing operations;

·; Purchasing significant interests in existing businesses;

·; Participating in the recapitalisation of exiting operations; and

·; Funding of late stage "greenfield" developments.

The Directors believe that their extensive industry and sector insight with local relationships across the world and experience in the areas of corporate finance, commodities trading and technical issues mean that they are well placed to manage the Company's investments. The Directors' extensive network of developed partnerships allows them to draw on the opinion and resources of consulting experts in the assessment of suitable opportunities. With a strong emphasis on downside protection, the strategy will look to focus on investments:

·; With a demonstrable ability to generate near term or immediate cash flows;

·; With cash flows which can demonstrate resilience throughout commodity cycles;

·; In commodities benefiting from industry consolidation;

·; In businesses which can benefit from the Company's additional value through commodity trading experience, financing, industry and technical knowledge; and

·; Which are not "grassroot" exploration plays.

The Directors are not, at this stage, engaged in any due diligence exercise nor have they entered into any commitment in connection with any investments or acquisitions. However, the Company is continuously reviewing business proposals that could result in possible transactions and the Company intends to implement the Investing Policy before 31 March 2011.

Having considered the Investing Policy and having consulted with and taken into account the views of certain of the Company's larger shareholders, the Directors are recommending the Investing Policy to Shareholders.

A circular setting out the Investing Policy and containing the Notice of Annual General Meeting is being sent to shareholders today.

For further information, call: