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Golden China Announces Fiscal 2006 Year-End Results

Golden China Resources Corporation (TSX. V: AUC) ("Golden China" or the "Corporation") announces its audited results for the year ended June 30, 2006. All figures are quoted in thousands of Canadian dollars unless otherwise noted.

For the fiscal year ended June 30, 2006, the Corporation incurred a loss from operations of $8,843 (2005: $3,053). Offsetting this was interest income of $218 (2005: $211) and recovery of income tax of $970 (2005: nil), resulting in a net loss for the year of $7,655 (2005: $2,843) or $0.09 (2005: $0.05) loss per share (basic and fully diluted).

"We accomplished a great deal in the fiscal year ended June 30, 2006, laying the groundwork for Golden China to become a major participant and consolidator in the developing Chinese gold and precious metals sector," said Douglas Betts, Chairman of Golden China Resources. "In addition to very good progress at our Beyinhar and Nibao gold projects, Golden China is on its way to becoming a leading foreign producer of gold in China through its upcoming business combination with Michelago Limited. Both Michelago and Golden China are firmly committed to the merger and expect it to be successfully completed in the near future."

On December 14, 2005 and amended effective August 15, 2006, the Corporation and Michelago Limited ("Michelago"), an Australian company whose common shares are listed on the Australian Stock Exchange ("ASX"), entered into a Business Combination agreement, pursuant to which they agreed to merge their business operations.

On September 28, 2006 at the Special Meeting of Shareholders, Golden China shareholders approved the planned business combination with Michelago. The business combination remains subject to the approval of the shareholders of Michelago, the TSX.V and the ASX, the Australian court and regulatory authorities in Canada and Australia.

Golden China also experienced success during its fiscal 2006 year with respect to its exploration and development projects. In February 2006, the Corporation announced an initial resource at its Nibao gold project, which has since been significantly upgraded. As well, in April 2006, Golden China initiated a drill resource definition programme at its Beyinhar gold project in Inner Mongolia.

As at June 30, 2006, the Corporation had outstanding 91,306,264 common shares; 35,024,157 common share purchase warrants; 7,736,662 outstanding incentive stock options granted to directors, officers and employees; and 2,571,428 agents' compensation options.

As at October 25, 2006, the Corporation had 91,319,092 outstanding common shares; 9,000,000 common share purchase warrants; 7,736,662 outstanding incentive stock options granted to directors, officers and employees; and 2,571,428 agents' compensation options.

The above share, warrant and option information does not reflect the approved share consolidation as the share consolidation is contingent on the successful completion of the business combination with Michelago.

Additional information about the Corporation including the financial statements and notes thereto and management's discussion and analysis are available at www.goldenchina.ca or at www.sedar.com.

About Golden China Resources Corporation:

Golden China Resources Corporation is a public company focused on the exploration and development, operations, and merchant banking in the Chinese precious metal industry. Golden China is capitalizing on a combination of its international mining and financing expertise and a partnership with the Hong Kong-based financial services provider, Kingsway Group, to become a significant participant and consolidator in China's developing precious metals sector. Golden China's shares are listed on the TSX Venture Exchange under the symbol AUC. Golden China has announced a planned business combination with Michelago Limited (ASX: MIC) to form a significant participant and consolidator in the Chinese precious metal industry and one of the largest producers of gold in China.

Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulatory authorities. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT

RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.

For further information: Golden China Resources Corp.: David K Charnock, Chief Financial Officer, Tel: (416) 366-8818 ext. 228, Fax: (416) 366-8828, info@goldenchina.ca; Kristen (Boucher) Humphrey, Communications Manager, Tel: (416) 366-8818 ext. 230, khumphrey@goldenchina.ca, www.goldenchina.ca; or Renmark Financial Communications Inc.: Tina Cameron, tcameron@renmarkfinancial.com, Tel.: (514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com

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