Jilin Jien Nickel Industry Co., Ltd. Announces Funding Terms of its
Subsidiary, Jien Canada Mining Ltd.

PANSHI CITY, China, Sept. 28 /CNW/ - Jilin Jien Nickel Industry Co., Ltd. ("JJ"), announces that the Board of Directors of its indirect subsidiary, Jien Canada Mining Ltd. ("JCML"), has approved the funding offer made by JJ's affiliate, Jien International Investment Ltd. ("JIL"), for the 2010 Program and Budget of JCML.

The offer comprised the issue of up to $122,347,000 of Units, comprising 154,983,544 Preference Shares and 494 Voting Common Shares at an issue price of $0.79 for each whole Preferred Share and $1 for each whole Voting Common Share.

JIL has offered to Goldbrook Ventures Inc. ("Goldbrook") (GKB-V), the minority shareholder of JCML, a 30 day opportunity to participate in the 2010 funding of JCML on the same economic terms to a maximum of $30,586,775 (structured as Class A Voting Shares and Class B Non Voting Shares) to maintain their 25% interest of Class A Voting Shares.

The economic rights of the shares of JCML are set forth in the Joint Bid, Shareholder and Operating Agreement (the "JS&O Agreement") dated August 6, 2010, which is a publicly filed "material document" by Goldbrook on August 10, 2009 on the Canadian Securities Administrators' disclosure site www.sedar.com.

The 2010 funding offer by JIL represents approximately 20% of the economic equity of JCML in return for approximately 39% of the funding into the company. JCML's Board of Directors approved the share issuance by majority vote, as specified by section 4.5 of the JS&O Agreement and section (f) of Schedule 1 thereto. JCML's Board of Directors received an opinion from one of the world's top four largest accounting and professional advisory firms that the funding offer was fair and reasonable, from a financial point of view, to JCML, and an opinion from one of Canada's largest law firms regarding legal compliance with the JS&O Agreement.

Following completion of the 2010 funding, and assuming Goldbrook does not participate in the funding, the share structure of JCML will be as follows:

    
    Share Class             JIL Holdings               Goldbrook Holdings
    -----------             ------------               ------------------

    Class A Voting Shares   569 shares, issued for     25 shares, issued for
                            $569 (95.79% of issued)    $25 (4.39% of issued)

    Preferred Shares        391,877,358 shares,        Nil
    (non voting)            issued for
                            $309,831,112.99 (100%
                            of issued)

    Class B Shares          Nil                        4,750,000 shares,
    (non voting)                                       issued for $3,950,000
                                                       (100% of issued)
    

JJ plans to fund the remainder of the capital for the construction of the Nunavik Nickel Project and other requirements of JCML through a combination of project finance, and equity on similar terms. Based on current expectations, additional equity of approximately $50 million to $400 million could be required, depending on the final project costs and the availability of project finance. The terms of the additional equity financing for Programs and Budgets of JCML will be subject to approval of the Board of JCML.

Goldbrook has not indicated whether they would participate to maintain their pro rata interest. Goldbrook has informed JJ and publicly announced that it takes the position the share issuance under JIL's offer is not permitted under the JS&O Agreement without its consent. Goldbrook asserts that all funding must be only through Preferred Shares (which would provide Goldbrook a "free carry" through construction), and that it intends to commence court and/or arbitration proceedings against JJ and others which may include, without limiting the foregoing, claims for breach of contract, oppression and bad faith. JIL is of the view there is no limit against issuance of Voting Class A Shares (and as such no "free carry" of Goldbrook) after funding of the take-over bid of Canadian Royalties Inc., under the JS&O Agreement. JIL believes Goldbrook's position is without merit and it intends to vigorously defend against any legal action by Goldbrook.

Forward-looking Statement

This news release contains certain forward-looking statements or forward-looking information. These forward-looking statements are subject to a variety of risks and uncertainties beyond the JJ's ability and control, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Accordingly, all of the forward-looking information contained in this press release is qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the JJ, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on JJ or its business operations. All forward-looking statements speak only as of the date of this news release and JJ does not undertake any obligation to update or publicly disclose any revisions to such forward-looking statements to reflect events, circumstances or changes in expectations after the date hereof, except as required by applicable securities law. Accordingly, readers should not place undue reliance on forward-looking statements.

For further information: Shu Wu, Chief Executive Officer, Jilin Jien Nickel Industry Co., Ltd., Panshi City, Jilin Province, P.R., China, 132311, Tel: [phone]