Golden China Releases June 2007
Quarterly Update Report 

Toronto, Ontario, July 26, 2007 - Golden China Resources Corporation (GCX: TSX, ASX) today released its quarterly update report, a regulatory filing required by the Australian Securities Exchange (ASX).  The briefing summarizes key corporate events for the three months ended June 30th, 2007, also reviewing the company's most recent, post-period (July) business development highlights. 

Highlights:

• Beyinhar drill hole BYD142 intersects 77 metres at 4.1g/t Au from 118 metres to 197 metres.
• Beyinhar Project Scoping Study indicates production of 100,000 ounces per annum at a low cost of between US$260 and US$280 per ounce.
• Golden China secures a second exploration licence at Beyinhar - expected to significantly increase the project's resource base.
• Beyinhar Feasibility Study underway with completion scheduled for December 2007.
• BACOX� technology exclusive license agreement for BioGold treatment plant renegotiated - extending the term of the agreement to perpetuity.
• Australian Solomons Gold releases drilling results from its latest drilling program.
• Golden China successfully concludes its $C7.8m fundraising¹.

1. Overview:
The immediate focus for Golden China continues to be; a) the development of its Beyinhar gold project in the Chinese province of Inner Mongolia and b) completing the expansion of its BioGold facility in Shandong.

Beyinhar remains a substantial asset for Golden China as demonstrated in a recent scoping study (Preliminary Assessment of the Beyinhar Gold Project, Inner Mongolia, People's Republic of China by Kappes Cassiday Australia, and Associates Pty Ltd), the results of which were announced to the market on 12 April 2007.  Subject to the completion of a Feasibility Study in December 2007, the project is expected to produce some 100,000 ounces per annum with a low cash cost per ounce (between US$260 and US$280) as well as a low capital cost (US$29M). It is anticipated that Beyinhar could be in production as early as late 2008. The full text of the scoping study is available on SEDAR or at the Golden China website at www.goldenchina.ca.

The Company remains confident in its investment in Australian Solomons Gold (ASG) (TSX: SGA).  The results of ASG's further drilling, announced on 12 June 2007 and 4 July 2007, have been particularly encouraging, as has been the recent increase in the share price of this investment.

Towards the end of the quarter, senior executives of Golden China initiated a series of meetings involving a number brokers and potential investors in Europe, North America and Australia with a view to promoting a greater awareness of the underlying value of the Company's assets.  The Company believes the meetings generated a broader appreciation and understanding of the recent success at Beyinhar in particular with the project now at its current stage of advancement. 

In connection with these visits, London based Vicarage Capital Limited published an equity research report on the Company. 

Golden China will continue highlighting the company's value as Beyinhar moves toward the release of a second 43-101 compliant resource statement and subsequent Feasibility Study, and as the BioGold facility expansion nears completion, all three (milestones) of which are expected for achievement over the next two quarters.  

2. Beyinhar

2.1 Exploration
The 2007 drilling program commenced in March 2007 and comprises over 17,000 metres within the defined Beyinhar Central Zone, as well as an extended program on the new Beyinhar South West exploration license. Additional deeper holes, between 120 metres and 170 metres deep, will be drilled to increase the resource within the recently discovered sulphide zone below the oxide resource.

There are currently three drill rigs on site which completed 7,446 metres during the quarter.

Table 2: Beyinhar drilling metreage

Drilling is continuing towards SW Beyinhar (EL2, which is 100% owned by Golden China) to delineate additional indicated and measured resources. This is shown in Fig. 1 Beyinhar 2007 Planned Drilling Programme CLICK HERE TO VIEW ORIGINAL PDF DOCUMENT.

Highlights of the 2007 drilling program are shown in Table 3. An updated NI-43-101 mineral resource estimate will commence in September 2007 and is currently scheduled for completion in October 2007.

Table 3:  2007 Drilling Program highlights

2.2 Feasibility Study
In light of the favourable results of the study, which indicate that the Beyinhar gold project could be developed as an open cut and heap leach operation, Golden China has commenced a NI-43-101 compliant Feasibility Study on the oxide resource at Beyinhar. The proposed timetable for the study is as follows:

During the quarter, the following work was undertaken on the Feasibility Study;

• Completion of topographic survey of the preliminary mine site, leach pad and waste dump area;
• Awarding of the contract for hydrological and water supply work to the No. 1 Hydrogeology and Geo-engineering Institute of Inner Mongolia;
• Completion of geotechnical drilling;
• Commencement of water sampling, rainfall data and population data collection;
• Collection and dispatch of 1,600 bulk metallurgical samples and variability samples representing the 2,000m strike length of the deposit to SGS Minerals Services (SGS) in Perth. Metallurgical test work has now commenced on this sample;
• Initiation of  hydro-geological and water supply exploration contracts with the Hydrogeology Institute and completion of the site hydro-geological program; and
• Completion of initial site layout, flow sheets and design criteria by KCAA.

Subject to the completion of the Feasibility Study, final engineering design and project approvals will commence and proceed in tandem. Current scheduling indicates construction commencing in April 2008, with commissioning expected by the end of 2008. 

2.3 Chinese Standard Feasibility Study
A Chinese Standard feasibility study is required to commence the application to adjust the approval conditions for the current Mining License at Beyinhar. The Beijing General Research Institute for Mining and Metallurgy (BGRIMM) has been appointed to carry out this work. This process will proceed in tandem with the KCAA Feasibility Study. 

2.4 CJV and Tenements
The Business License for the new Co-operative Joint Venture (CJV) Company, Nei Menggu Golden China Minerals, was approved.  The CJV company, of which Golden China owns 95%, will hold the Beyinhar licenses.

Transfer of the existing Mining License (ML) and Exploration License under which the current resource is held (EL1) into the new CJV has commenced³. The Exploration  License, currently owned 100% by Golden China's partner Neimenggu Non-Ferrous Geology and Minerals Co., Ltd. ("NGM"), was recently renewed until 1 April 2008. Golden China will pay US$0.2 million upon registration of the CJV bank account and a further US$2.8 million upon the transfer of EL1 and the ML to the new CJV.

A new Exploration License, EL2, abutting the existing EL1 and covering an additional 33 square kms, which is believed to host the south west extension of the Beyinhar ore body, was approved during the quarter. The License is due for renewal in December 2008. This new EL is owned 100% by Golden China.

3. BioGold Production
During the June (March) quarter, the BioGold plants processed 8,777 (10,955) tonnes of concentrate at a gold equivalent grade of 69.07 (51.13) g/t.  Equivalent gold won for the quarter was 17,659 (15,809) ounces, while gold sales were 23,595 (14,187) ounces. Total plant production and sales for the June quarter are indicated in Table 1 below:

Table 1: Total plant production

Gold grade and gold won increased during the quarter despite production (primarily in the BACOX� plant) being substantially affected by power failures resulting in a decrease in throughput.  To avoid the negative impact of power failures in the future, a new emergency back-up power system is being fast-tracked and is expected to be installed early in the next quarter.  This will all but eliminate the risk of further power outages impacting on BACOX� plant production.

The base metal flotation plant, goldroom and refinery operated without incident during the quarter.
An agreement was reached with China Construction Bank in respect of an increased bank facility for the purchase and importation of international concentrate.  Efforts are now being directed toward securing further international concentrate sources.

Planning for the BACOX� plant expansion project was progressed and construction will begin in the next quarter.

4. BacTech Technology License
On 19 June 2007, Golden China and BacTech Mining Corporation (owners of the bacterial oxidation BACOX� technology employed by the company's BioGold production facility) finalised an agreement to amend the existing technology licensing agreement for the use of this technology.  Under an amended agreement to be entered into between subsidiaries of BacTech Mining Corporation and Golden China, the current ten-year term for which Golden China's exclusive rights to the use of the technology in China and Korea will be replaced with an open-ended term with the licence continuing into perpetuity, subject to certain rights of termination.  Golden China will also be given the right to sublicense the technology in the regions covered under the agreement. 

Additionally, the amended agreement will remove BacTech Mining Corporation's entitlement to any future royalties and eliminate its right to a cquire a 5% to 15% equity interest in any future BACOX� operations built by Golden China in these regions.

In consideration for the amendments, Golden China will issue, subject to required regulatory, shareholder and third party approvals, 847,458 common shares to BacTech.  Shareholder approval for this issue will be sought at the General Meeting of the company scheduled for 7 August 2007.

5. Nibao Exploration
Resource definition drilling continued at Nibao and a total of 899 metres was drilled during the quarter.  Details are shown in Table 4.

Table 4: Nibao drilling meterage

A new range of structural targets have been generated from the work completed by consultant Dr. David Gray of GeoStructures Pty Ltd who spent a number of weeks on site.

A number of structural drill holes at Nibao East were completed. The primary objective of these holes was to define the relationship of various gold drill intercepts of the nearby old diamond drill holes NBDDH001 (the first APAC drill-hole ever in 2003) and NBDDH029 and the latest structural interpretation of the recumbent fold over the Nibao Thrust.

The application for the new Southern exploration license was approved and granted during the quarter and work will commence drilling the higher grade Nibao South extension during the next quarter.

6. Corporate
On 24 May 2007 GCRC announced that it had successfully concluded its C$7.8m fund raising through a combination of Convertible Senior Secured Debentures (C$4.8m) Units consisting of one GCRC common share and one half of one GCRC common share purchase warrant (C$1.4m) and Subscription Receipts entitling the holder to receive one Unit if shareholder approval is received for the issue of the underlying securities at the General Meeting of GCRC to be held on 7 August 2007.  If shareholder approval for the issue of these securities is not received before 19 October 2007, the proceeds of the Subscription Receipts will be returned to subscribers.

7. Competent Person
The review of exploration activities and results contained in this report is based on NI-43-101 compliant reports as well as information compiled by Mr. Alphonso Latorre, M Aus IMM, the company's Beyinhar Project Manager.  Mr. Latorre has sufficient experience relevant to the style of mineralization and types of deposits as well as to the activity that he is undertaking to qualify as a competent person as defined in the December 2004 edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ores Reserves (the JORC Code).  Mr. Latorre has consented to the inclusion in this report of information in the form and context in which it appears.

......................
G B Starr
President and Chief Executive Officer
26 April 2007

About Golden China Resources Corporation:

Golden China Resources Corporation is a significant participant and consolidator in the Chinese precious metal industry and one of the largest producers of gold in China. The company is using its extensive knowledge of the Chinese marketplace and best practices based on established international standards in building a diversified gold business focused on exploration and development, operations, and corporate development in the Chinese precious metal industry.  Golden China's shares are listed on the main boards of both the Toronto and Australian Stock Exchanges under the symbol GCX.

For further information please contact:

Golden China Resources Corp.
Kristen (Boucher) Humphrey
Communications Manager
Tel: 416.366.8818 ext. 230
khumphrey@goldenchina.ca
www.goldenchina.ca

or 

Renmark Financial Communications Inc.
Barbara Komorowski : bkomorowski@renmarkfinancial.com
Julien Ouimet : jouimet@renmarkfinancial.com
Tel.:  514.939.3989
Fax:  514.939.3717
www.renmarkfinancial.com

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.

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RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.