charts

Weekly trendline appears to have bottomed and broken out on Andrews upper line.
Daily has gone quiet on volumes
appears to be in a Flag .5 cent trading channel
045 stoploss imo.....




from 16/02/06..As you know
First tranche financing concluded prior to merge.


16 February 2006 Company Announcements Office Australian Stock Exchange Limited Exchange Square, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Golden China Resources successfully raises up to $C18M loan capital Merger Progress - Update Michelago Limited (ASX: MIC, MICO “Michelago”) is pleased to advise that Golden China Resources Corporation (GCRC) has closed the first tranche of financing which will be used as working capital to fund half of Michelago’s working capital facility requirements for the gold concentrate inventory of the BioGold processing plant in Shandong Province, China. In the first tranche of a two part financing, GCRC raised C$12.6 million and has the ability to increase the funding to $C18M through a second tranche of financing which is expected to be completed in the coming weeks. GCRC's agreement to provide half of the funding for the BioGold processing plant working capital is part of the planned business combination between Michelago and GCRC. GCRC and ANZ are now finalising documentation for their respective loans to Michelago, which will be used to provide the RMB200M, ($US25M) required for the BioGold working capital facility. Michelago is advancing the documentation required for the Scheme of Arrangement between MIC and GCRC and a final report from the Company’s appointed independent expert is expected shortly. The Company is working towards submission of the scheme documentation to the ASIC for review towards the end of next week. It is currently anticipated that the various scheme meetings to consider the proposed merger will be held in April 2006. About Michelago Limited: Michelago Limited (ASX: MIC, MICO) is an Australian gold producing company with over 10 years operating experience in China.

Michelago is now the largest foreign gold producer in China through its 99% ownership of the BioGold Sino foreign joint venture gold processing facility in Shandong Province.

The Company's business strategy is to develop a vertically integrated mining business comprising mining operations, processing facilities and
gold refining. The Company is in the process of merging with TSX Venture Exchange listed Golden China Resources Corporation (TSX/VE: AUC), but will remain listed on the ASX. For further information please contact: Michelago Limited Greg Starr Managing Director Tel: 02 9252 8055 www.michelago.com