Update

RNS Number:2390S
Tianshan Goldfields Ltd
14 April 2008





                          Tianshan Goldfields Limited

                         ("Tianshan" or the "Company")



        Focussing on Project Development and Exploration success in 2008



-      2.6m oz Au Gold Mountain Project in Northwest China - (90%)

-      Gold Mountain Project Pre Feasibility study due to complete latter half
2008

-      Working Towards Mining Licence Application for latter half 2008

-      2008 field season to commence by the end of April this year with initial
focus on highly prospective new targets identified in 2007 on southern tenements
and near resource high grade results at southern Jinxi from 2007

-      20,000 metre drill programme planned with a majority focus on regional
and near resource targets

-      Cash balance currently sits at $17m providing enough funds for the 2008
field programme and potential completion of a full feasibility study on Gold
Mountain





Tianshan Goldfields Limited ("Tianshan or the Company") (AIM/ASX: TGF) owns 90%
of the 2.6moz Gold Mountain project in the Xinjiang Province of North West
China. The Company's aim is to develop the Gold Mountain project into a large
tonnage, low cost, open pit mining and heap leach operation with initial
production target of 80koz-100koz per annum. Please find an update on the
progress of the Gold Mountain project and a look forward to what to expect in
2008 for the project and the Company.



Pre-Feasibility Studies

The critical path in 2008 for the development of the Gold Mountain project lies
with the completion of a Pre-Feasibility study and submitting a Mining Licence
Application.

Pre-Feasibility studies commenced in 2007 and included metallurgy test work
conducted by Kappes Cassidy & Associates and SGS Lakefield, the engagement of
Bateman Engineering for process plant studies and Golder Associates for heap
leach pad and environmental studies. The Pre-Feasibility study aims to complete
the following items many of which have already commenced or are nearing
completion:

  * Basic process plant design and costing - the process design criteria and
    process flow diagrams have been set with basic engineering design and
    costing in progress;

  * Site layout - significant progress has been made in the first quarter of
    this year on the site layout to the extent that no significant changes are
    expected going forward with the project;

  * Leach pad studies at Yelmand and Mayituobi - Preliminary leach pad studies
    are complete and include a 40mt valley leach facility for Yelmand and Jinxi
    and a conventional heap leach facility for Mayituobi;

  * Preliminary road designs - access to the site this field season will allow
    engineering studies to commence on the main access road options to the
    project site;

  * Water supply studies - a preliminary water supply study completed by a
    local PRC Design Institute indicates that there is sufficient surface water
    available in close proximity to the project to cater for the projects
    requirements;

  * Power supply studies - grid power is available in Yining, some 60km away,
    and is supplied to the nearby Arxi mine. Studies are underway to determine
    the grid power supply options for the project;

  * Environmental baseline studies - various long lead baseline environmental
    studies commenced in 2007 with the balance scheduled to commence in Q2 this
    year; and

  * Pit optimisations and mine planning - this is targeted to commence in Q2
    2008 and will provide the mine scheduling to be used in the Pre-Feasibility
    Study.



Mining Licence Application

As Pre Feasibility studies progress the company has also been very busy
compiling all the necessary documents required by the PRC Ministry of Land and
Resources (MOLAR) for a Mining Licence Application. Essentially the documents
are broken into the following key categories:

  * MAS - Mine Area Scoping which is a map of the mining area boundaries;

  * EISA - Environmental Impact and Social Assessment; and

  * MRDUP - Mineral Resource Development plan and utilization proposal.

The Company has commenced discussions with a short list of preferred PRC Design
Institutes with the aim of selecting appropriate design institutes to conduct
the Chinese Feasibility Study and the Chinese ESIA with the target of submitting
the Mining Licence Application to MOLAR in the latter half of this year.

Exploration Programme 2008

With the beginning of the field season fast approaching Tianshan has planned an
Exploration programme in 2008 at its Gold Mountain project which will focus on
regional and near resource exploration and further evaluation drilling.



Regional Exploration Drilling - 12,500 metres Planned

Previous years work has highlighted 31 anomolous targets within our 13 granted
tenements covering approximately 632km2. Initially exploration efforts will
focus on the southern tenement Nalensayi, where follow up drilling is required
at prospects identified in 2007 namely Tikexi, Jin Gu and Awuliya.  This work
will initially involve extensive prospect scale geological mapping and sampling
together with acquisition of ground magnetics shown to be invaluable in
interpreting key structures that appear to control mineralisation.



Near Resource and Evaluation Drilling - 7,500 metres Planned

The 2007 exploration programme intersected 51m @ 4g/t Au at southern Jinxi
highlighting the potential of a high grade shoot beneath the current blanket
mineralisation. This southern extension at Jinxi is open and will be one of the
first drilling targets in 2008. Evaluation drilling will include some infill
drilling at Yelmand-Balake and Jinxi to complete resource drill testing and
Geotechnical pit slope stability evaluation and condemnation drilling of key
planned infrastructure sites.



Summary

2008 holds the potential to be an exciting and progressive year for Tianshan
Goldfields. Firstly should a positive outcome be achieved on the completion of
pre feasibility studies, Tianshan will move immediately to complete a full
feasibility study. The positive outcome of which is expected to unlock
significant value in our 2.6moz Gold Mountain project particularly at current
gold prices as a potential low cost producer.

In addition the positive steps towards the granting of a mining licence in China
will be critical and we aim to begin the process by submitting a mining licence
application in the latter half of this year.

Our 2008 field programme plans to undertake an aggressive regional exploration
campaign on advanced targets commencing late April in search of new discoveries
on our highly prospective tenement holdings over the Tulasi basin. We will also
focus on near resource targets such as the potential high grade feeder
structures at southern Jinxi.



Our current cash balance is approximately $A17m and there is potential for
further cash injection of up to $A5m from June through to October 2008 from the
conversion of shareholder options. Given the current volatility of global equity
markets I am pleased to report that Tianshan is currently well funded through to
2009 and the potential requirement of development capital for the Gold Mountain
Project.



Tianshan has secured the services of two very experienced engineers to lead the
project development team on the Gold Mountain project.



Mr Robin Jones joined Tianshan in January 2008 as Project Manager, he is an
engineer who has over 18 years experience in project management and development
of resource projects from scoping study level through to implementation. Mr
Jones was the Project Manager for CopperCo's recently established Lady Annie
Copper heap leach project in Australia and he continues in this role for the
current expansion project at Lady Annie. Before this he spent several years
working for Impala Platinum before joining Aquarius Platinum as part of the
executive team that developed the highly successful Kroondal Platinum Mine.
Through the development of Lady Annie and Kroondal Platinum Mr Jones comes with
an established and long association with Tianshan board members Mr Keith Liddell
and Mr David Evans.

In addition Tianshan has also recruited Mr Edward Rose, a senior project
engineer with over 20 years experience in project engineering, construction and
procurement including  gold processing plants in China. Mr Rose will be based in
Beijing and will work closely with local Chinese Design Institutes.

Together Mr Jones and Mr Rose are currently focussed on completing the Pre
Feasibility study and submitting a mining licence application for the Gold
Mountain Project sometime in the latter half of 2008.

With the outlook in 2008 focusing on the potential development of the Gold
Mountain project as well as an aggressive exploration programme, Tianshan hopes
to improve on its current market capitalisation which is approximately US$35 per
resource ounce.





Mr SL Allnutt (AusIMM, 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 Limited
Level 22, Allendale Square
77 St Georges Terrace
Perth WA 6000
Telephone:               +61 8 9221 7729
Fax:                     +61 8 9221 7866



Keith Liddell - Chairman
Grant Thomas - Managing Director
Jason Bontempo - Chief Financial Officer




WH Ireland Limited
11 St James's Square
Manchester
M2 6WH
Telephone:              +44 161 8322174

David Youngman
Katy Mitchell








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