Fuwan Silver Project

Upon production, the Fuwan Silver deposit is expected to rank among the top ten silver mines in the world. Minco's Fuwan project has delineated 143 million ounces of high-grade silver over a 2.8 kilometer strike length within a 10 kilometer mineralized trend. The property covers about 200 square km, of which only 2 square km has been explored to date. The entire property is considered to have strong silver potential which could amount to several hundred million ounces. As a result of this property, Minco Silver is expected to be a 4.9 million ounce per year silver producer by 2010.
Unlike most mining properties, the Fuwan property is one of the few mineral projects in the world that already has a significant infrastructure in place, which is expected to save the company tens of millions of dollars in development costs.

Minco Silver's huge discount to the market per ounce in the ground is the real reason to own this stock. Investors looking for the cheapest ounce of silver in the ground need not look any further. An updated and revised NI 43-101 Technical Report dated November 2, 2006, calculated an inferred silver resource of 112.9 million ounces (19 million tonnes averaging 185 g/t Ag with a 75 g/t cut-off) on the Fuwan silver property. On December 11, 2007, the company reported a resource update that upgraded the overall tonnage of the Fuwan silver deposit from 19 million tonnes to 23 million tonnes, increased the 128 million ounces of silver to 143. million ounces, and upgraded 4.5 million tonnes (containing 29.2 million ounces of silver) to 9.9 million tones, with an average grade of 181g/t silver.

The Fuwan Project is on a prominent ridge overlooking the Xi Jiang River and groundwater was a concern for this project. The Fuwan Silver Project is an underground mine so understanding how the water would impact mining was a key part of the feasibility study. Minco Silver conducted a hydrological study which answered these questions; drilling 18 hydro-geological holes to check water inflows and movement. Initial indications show there is no connectivity between the river and the mining envelope. What a hydrological study ascertains is whether groundwater flows exceed what can cost effectively be pumped out to keep the mine dry and miners safe. Minco has shown that they have a viable, safe mining envelope in which to mine.

Minco's Fuwan project has an indicated silver resource of 143 million ounces of high-grade silver, (with a new resource upgrade pending during May 2008) which gives Minco Silver the potential to be a 5 million ounce producer by 2010. At today's price of $16.87 an ounce, the project has an in situ (in the ground) value of $2.16 billion. If Minco Silver produces 5 million ounces, net sales could be $65 million, at current prices. Silvercorp, by comparison, posted $45.3 million in net sales for fiscal '07. The market is currently valuing Silvercorp with a $1 billion market cap and Minco Silver with a 71.2 million market cap. The key to remember is that Silvercorp shares have moved from a few dollars to their current $22.00 level as their mine went in to production. Obviously, the time to buy Minco Silver is before it starts production on its Fuwan project.

Summary

China is one of the world's fastest growing economies with a giant appetite for natural resources. Worldwide, there is currently a shortfall in silver on an annual basis. Minco Silver is one of the cheapest silver equities by ounces in the ground when compared to other silver stocks. Upon production, the Fuwan Silver deposit is expected to rank among the top ten silver mines in the world. It is now easier and more secure than ever for foreign mining companies to operate in China. The Central government has taken bold steps to encourage foreign investment and participation in developing China's mining industry.