CGG China Gold International Resources Corp Ltd

China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx: 2099) (the “Company” or “China Gold International Resources”) is pleased to report Year-End 2018 results and provide 2019 Outlook.

FINANCIAL, PRODUCTION AND OPERATION HIGHLIGHTS

2018 Fourth quarter highlights

• Revenue increased by 22% to US$163.0 million from US$133.3 million for the same period in 2017.
• Mine operating earnings decreased by 27% to US$33.3 million from US$45.7 million for the same period in 2017.
• Net loss after income taxes of US$2.0 million decreased from a net profit of US$20.0 million for the same period in 2017.
• Gold production from the CSH Mine decreased by 31% to 41,506 ounces from 59,998 ounces for the same period in 2017.
• Copper production from the Jiama Mine increased by 19% to 17,711 tonnes (approximately 39.0 million pounds) from 14,905 tonnes (approximately 32.9 million pounds) for the same period in 2017. Gold produced was 22,150 ounces compared to 17,893 ounces for the same period in 2017.  The increase in production was primarily due to the output from the commercial production of the Phase II expansion. 

2018 Annual highlights

• Revenue increased by 39% to US$570.6 million from US$411.9 million for the same period in 2017.
• Mine operating earnings decreased by 5% to US$110.7 million from US$116.8 million for the same period in 2017.
• Net loss after income taxes of US$4.2 million decreased from a net profit of US$64.3 million for the same period in 2017.
• Gold production from the CSH Mine decreased by 22% to 144,896 ounces from 186,957 ounces for the same 2017 period.
• Copper production from the Jiama Mine increased by 54% to 55,025 tonnes (approximately 121.3 million pounds) from 35,844 tonnes (approximately 79.0 million pounds) for the same period in 2017.  Gold produced was 70,262 ounces compared to 47,710 ounces for the same period in 2017.  The increase in production was mainly due to the output from the commercial production of the Phase II expansion. 
• The cash production cost, and total production cost for the CSH Mine are presented in the table below.

CSH Mine	Year ended December 31,
	2018	2017
Total production cost (US$) of gold per ounce	1,164	1,055
Cash production cost* (US$) of gold per ounce	750	670
* Non-IFRS measure

• The cash production cost, and total production cost for the Jiama Mine are presented in the table below.

Jiama Mine	Year ended December 31,
	2018	2017
Total production cost* (US$) of copper per pound	2.97	2.47
Total production cost* (US$) of copper per poundafter by-products credits***	2.08	1.36
Cash production cost** (US$) per pound of copper	2.25	2.05
Cash production cost**  (US$) of copper per poundAfter by-products credits***	1.36	0.94

* Production costs include expenditures incurred at the mine sites for the activities related to production including mining, processing, mine site G&A and royalties etc.** Non-IFRS measure*** By-products credit refers to the sales of gold and silver during the corresponding period.

LIQUIDITY AND CAPITAL RESOURCES

• At December 31, 2018, the Company had an accumulated surplus of US$229.8 million, working capital of US$39.3 million and borrowings of US$1,210 million. The Company’s cash balance at December 31, 2018 was US$138.0 million.
• The Company’s borrowings are comprised of US$505.7 million of 3.25% unsecured bonds maturing on July 6, 2020, of which US$16.1 million is included in the current portion of borrowings, and US$107.8 million of short term debt facilities with interest rates ranging from 2.75% to 4.35% per annum arranged through various banks in China. In addition, on November 3, 2015, the Company entered into a Loan Facility agreement with a syndicate of banks, led by Bank of China. The lenders agreed to lend an aggregate principle amount of RMB 3.98 billion, approximately US$613 million with the interest rate of 2.83% per annum currently. The People's Bank of China Lhasa Center Branch’s interest rate serves as a benchmark for the interest on the drawdowns. The bank’s interest rate is then discounted by 7 basis points (or 0.07%) to calculate the interest on the drawdowns.

2019 PRODUCTION AND OPERATING OUTLOOK:

• Projected gold production of 210,000 ounces in 2019.
• Projected copper production of approximately 132 million pounds in 2019.
• The Jiama Mine’s Phase II expansion consists of two series, with each series having a mining and mineral processing capacity of 22,000 tonnes per day (“tpd”).  The Phase II, Series I expansion reached commercial production on December 31, 2017, followed by commercial production of Phase II, Series II effective July 1, 2018, bringing the entire Phase II expansion project into commercial production. The Company was able to accelerate its development and commissioning to achieve commercial production for Series II ahead of schedule.  The Company continues to ramp up operations at Series II to full design capacity of 22,000 tonnes per day (“tpd”).    The full design capacity of ore processing at the Jiama Mine will increase to 50,000 tpd from the previous capacity of 28,000 tpd once Series II reaches full design capacity. 
• The Company will continue to leverage the technical and operating experience of the Company’s substantial shareholder, China National Gold Group Corporation (“CNG”), to improve operations at its mines. In addition, the Company continues to focus its efforts on increasing production while minimizing costs at both mines.
• To fulfill its growth strategy, the Company is continually working with CNG and other interested parties to identify potential international mining acquisition opportunities, namely projects outside of China.

ANNUAL RESULTS INVESTOR AND MEDIA PRESENTATION

Management will hold its 2018 Annual Results Investor and Media Presentation in Hong Kong on March 28, 2019 at 10 a.m. (Hong Kong time). Year-End 2018 results and performance will be discussed with a question and answer period.

For a detailed look at the financial statements and MD&A for the year ended December 31, 2018, 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.

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 additional information on China Gold International Resources Corp. Ltd., please refer to its SEDAR profile at www.sedar.com or contact Tel: 604-609-0598, Email: info@chinagoldintl.com, Website: www.chinagoldintl.com.

Cautionary Note About Forward-Looking StatementsCertain 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.