Tuesday, December 21, 2010

Continental Minerals Corp. & Jinchuan Group Sign Formal Arrangement Agreement

December 20, 2010, Vancouver, BC – Continental Minerals Corporation (TSX-V:KMK, OTCBB:KMKCF) (“Continental” or the “Company”) announced today that it has signed the formal arrangement agreement (“Arrangement Agreement”) with Jinchuan Group Ltd (“Jinchuan”) to implement Jinchuan’ s  proposed  acquisition of Continental announced September 17, 2010. Jinchuan is a large China-based mining group and will be acquiring Continental for aggregate cash consideration of approximately C$431 million through a statutory plan of arrangement (“Arrangement”) process which will be subject to the terms and conditions of the Arrangement Agreement. 


The Arrangement Agreement provides for the acquisition of 100% of Continental’s approximately 166 million common shares on a fully diluted basis for C$2.60 per share.  Continental is entering into banking arrangements to facilitate the exercise of all outstanding options so that the underlying shares can participate in the Arrangement and Continental’s outstanding class of Preferred Shares will be exchanged for common shares of Taseko Mines Limited .The Board of Directors of Continental is also proposing to include in the Arrangement a special cash distribution of about C$0.07 per outstanding Continental share (including option shares) as of a record date immediately prior to completion of the Acquisition. Completion of the Arrangement is targeted for mid-February, 2011

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