General
Mining Corporation has secured a joint venture agreement covering a highly
prospective copper project adjoining its existing licences on the Khangai Fault
in the northwest of Mongolia.

The Khangai Fault is a prominent fault which lies within the much larger
Mongol-Okhotsk suture zone that stretches 3,000 kilometres into Russia and is
up to 200 kilometres wide.

General Mining, through its wholly owned Mongolian subsidiary Golden Cross, can
earn up to a 60% interest in the Oyut Tolgoi copper project – not to be
confused with Oyu Tolgoi in the south of Mongolia – by meeting certain
expenditure obligations before February 2013.

Surface exploration and diamond drilling in the mid -1970s at Oyut Tolgoi
identified extensive copper mineralisation hosted in gabbroic rocks, with
several of the historic holes returning mineralised intervals over tens of
metres down hole.

Exploration included geological mapping, trenching and diamond drilling
resulting in the discovery of a sizeable copper system.

Mineralisation consists of chalcopyrite and bornite with secondary covellite
and chalcocite, hosted within gabbroic intrusive rocks associated with a major
regional fault system.

The addition of the joint venture agreement to General Mining’s portfolio now
gives the company exposure to 154,610 hectares along the Khangai/Bulnay Fault.

Khangai Fault Project

General Mining is targeting nickel, copper and platinum group elements within
gabbro-mafic-ultramafic intrusions along the Khangai Fault where it holds five
granted licences.

The Khangai Fault Project is considered prospective because of its proximity to
Oyut Tolgoi where there is the presence of copper-nickel-cobalt-platinum group
elements mineralisation along the Khangai Fault, with highlight intercepts of
more than 100 metres at 1% copper.

The project lies along a largely unexplored deep fault in a region that hosts
several world class nickel-copper-platinum group elements and
copper-molybdenum-gold deposits.