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Sinchao Metals announces first Quarter financials and operating results

VANCOUVER, BRITISH COLUMBIA-Sinchao Metals Corp. (TSX.V-SMZ)-(all figures in Canadian dollars, unless otherwise noted)

Sinchao Metals Corp. is an exploration and development company focused on the Sinchao polymetallic mineralization project in Peru. Today it reports results for the 3 months ended June 30, 2008.

Highlights:

Financial

• Loss for the quarter was $8,670 compared to net income of $110,988 for the same quarter in 2007 and net income per share of $0.000 compared to $0.002 net income per share in 2007. The loss in the quarter compared to the prior year was due to the fluctuation in exchange rates and the resulting reduction in the foreign exchange gain.

Operational

• Copper-Gold-Silver mineralization has now been identified over an area of approximately 750 metres by 300 metres, and to a depth of approximately 400 metres, along two northeast-southwest sections.

• Step-out drilling continues to intersect mineralization, with drill rigs working 150 metres to the northwest and 300 metres to the southeast.

“We are pleased with the continuing positive results of our drill program,” states President Andrew Gourlay, “and we look forward to further defining the extent of the mineralization on this property.”

The complete Management Discussion and Analysis and Financial Statements will be filed at www.sedar.com. For further information call (604) 681-6186 or toll free: 1-888-356-4784 or visit our website at www.smzmetals.com. Andrew Gourlay, P. Geol., President of Sinchao Metals Corp. is the Qualified Person for the technical disclosure in this news release.

On behalf of Sinchao Metals Corp;

Andrew W. Gourlay, P. Geol.
President

About Sinchao Metals Corp:

Sinchao Metals Corp. (TSX.V:SMZ) is focused on the exploration and development of the Sinchao property, located in Cajamarca province in Northern Peru, 30 kilometres from Yanacocha, the largest gold mine in South America. The company is dedicated to creating value for its shareholders by pursuing growth, expansion and enhancement of the Sinchao property. For further information please contact the Company at (604) 681-6186 or toll free: 1-888-356-4784. Visit the company website at www.sinchaometals.com

This news release may contain forward-looking information within the meaning of the Securities Act (Ontario) ("forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of gold and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Please find the results under the following link: http://www.irw-press.com/dokumente/Sinchao-01-09-08ENG.pdf

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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