Operational Update

17 May 2017 11:28

China Nonferrous Gold Limited

("CNG" or the "Company")

OPERATIONAL UPDATE

Further to the announcement of 28 February 2017, China Nonferrous Gold Limited 中国有色黄金有限公司 (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, provides an update on impact of the avalanches at the Pakrut gold mine.

Access to the mine had been limited as a result of the avalanches however, the snow has now been successfully cleared and access has returned to normal. Renovation of the damaged buildings is ongoing and a temporary external power restoration program is underway with power supply to the mine expected to resume later this month.

Following the melting of the extreme snowfall, certain sections of the mine below 2,230 metres remain flooded and the drainage work will not commence until the power supply is resumed. As a result, operations at mine site are not expected to return to normal levels until the fourth quarter of 2017.

Discussions with the Company’s insurance provider are also ongoing following a site visit and the Company will provide an update in due course.

For further information please visit the Company’s website (www.cnfgold.com) or contact:

China Nonferrous Gold Limited

David Tang, Managing Director

Tel: +86 10 8442 6681

Investec Bank Plc

Jeremy Ellis, George Price

Tel: +44 (0)20 7597 5970

Beaufort Securities Limited

Jon Belliss

Tel: +44 (0)20 7382 8300

Blytheweigh

Tim Blythe, Camilla Horsfall

Tel: +44 (0)20 7138 3224

Project Summary

The Pakrut gold project, of which CNG has 100 per cent ownership, is situated in Tajikistan approximately 120km northeast of the capital city Dushanbe. Pakrut is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and Western China, and which hosts a number of multi-million ounce gold deposits.

CNG is currently in a commissioning phase with mining contractors on site finalising constructing of the mine, plant, tailings dam and refinery.

About Tajikistan

Tajikistan is a secular republic located in Central Asia. The country is a member of the Commonwealth of Independent States and the Shanghai Cooperation Organisation. Tajikistan hosts numerous operating precious metal mines as well as the largest aluminium smelter in Central Asia. CNG's management team has extensive experience in the mining industry in Tajikistan.

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