Xinhua China Reports Third Quarter Results

Xinhua China Reports Third Quarter Results

May 16, 2006

     - Achieves positive cash flow from operations for the
nine months

     - Announces new subsidiary for on-line digital
content

     - Plans to begin co-publishing venture


    BEIJING, May 16 /Xinhua-PRNewswire/ -- Xinhua China
Ltd. today announced results for its third fiscal quarter
and nine months ended March 31, 2006 and noted it had
positive cash flow from operations for the nine months of
$811,714.  The company reported there are no comparative
results for the year ago periods as the company's majority
owned operating subsidiary, Xinhua Publications Circulation
& Distribution Co., began operations February 1, 2005.

    Revenues for the quarter totaled $7,781,000 and
$32,997,000 for the nine months.  Gross profit in the
quarter amounted to $917,000 and $3,628,000 for the three
quarters.  While the company's share of net losses for the
quarter was $4,339,000, or seven cents a share, a
significant portion of its third quarter losses are due to
non cash expenses such as stock based compensation charge
of $941,213, non cash accounting treatment of convertible
debenture of $1,049,727 and bad debt expense of $1,576,512.
 For the nine months, its share of net losses was
$8,200,000, or 13 cents a share.  Earnings per share are
calculated on 61,779,765 weighted average diluted shares
outstanding, for the three and nine months.  The company
said this was a seasonally slow quarter.

    Xianping Wang, President and CEO, said, "We
continue efforts to increase revenue, reduce expenses, and
bring Xinhua C & D above breakeven.  As we have
reported previously, this endeavor is taking longer than
originally envisioned.  As a result, we are executing on
our strategy to launch a digital media company," Mr.
Wang added.   "With China rapidly becoming the most
wired country in the world, we are positioning ourselves to
take advantage of the trend for online content, particularly
foreign content.  Internet usage in China by middle class
consumers is growing at an annualized rate of 60 percent.
There's no question China represents a great business
opportunity for online content and service providers,"
Wang stated.

    On May 9, 2006, the Company formed a wholly owned
digital media subsidiary, Beijing Joannes Information
Technology Co. Ltd. ("Joannes"). Joannes will
launch an e-commerce site -branded "Geezip" and
will be searchable by PC and wirelessly using smart phones.
Geezip will distribute digital content held by Xinhua
C&D, other Chinese and foreign publishers such as
Readers Digest. In addition to being able to purchase
e-books and hard copy books online e-audio and e-music will
also be offered, according to the company.

    "Xinhua also expect to establish a co-publishing
company to focus on co-publishing agreements with some
domestic publishers.  Operating independently of Xinhua
C&D, the co-publishing company expects to enter
directly into co-publishing agreements, with marketing and
sales provided by Geezip and Xinhua C&D providing
procurement services," Wang concluded.

    About Xinhua China

    Xinhua China Ltd. (OTC Bulletin Board: XHUA) is a
US-based holding company with publishing and distribution
interests in China. Through its subsidiary, Xinhua
Publications Circulation & Distribution Co., Ltd., the
Company holds a national license for the distribution of
books and other publications in China.

    Safe Harbor Statement

    This news release may include forward-looking
statements within the meaning of section 27a of the UNITED
STATES SECURITIES ACT of 1933, as amended, and section 21e
of the UNITED STATES SECURITIES and EXCHANGE ACT of 1934,
as amended, with respect to achieving corporate objectives,
developing additional project interests, Xinhua China's
analysis of opportunities in the acquisition and
development of various project interests and certain other
matters. These statements are made under the "safe
harbor" provisions of the United States private
securities litigation reform act of 1995 and involve risks
and uncertainties, which could cause actual results to
differ materially from those in the forward-looking
statements contained herein.


Xinhua China Ltd.
(formerly Camden Mines Limited)

CONSOLIDATED BALANCE SHEETS
[Basis of presentation and going concern uncertainty]
(Expressed in U.S. dollars)

(Unaudited)

                                                Mar. 31,
2006   Jun. 30, 2005 
    Assets     
    Current Assets   
    Cash                                         $ 
2,840,377   $  1,336,269 
    Restricted Cash                                        
-        362,516 
    Account Receivable, including related 
     party receivables of $3,739,283   
     (June 30, 2005 - $5,926,629)                 
40,406,161     39,166,242 
                               
    VAT receivable                                 
3,930,417      5,964,445 
    Inventories                                   
18,613,396     17,445,410 
    Prepayments                                       
63,737        126,917 
    Total Current Assets                          
65,854,088     64,401,799 
                                                           
             
    Property, plant and equipment                 
26,973,968     26,000,804 
    National distribution right                    
6,366,844      6,167,000 
    Goodwill                                       
6,373,978      6,173,992 
    Total Assets                                
$105,568,878   $102,743,595 
                                                           
             
    Liabilities and Shareholder Equity                     
             
    Current Liabilities                                    
             
    Account payable and accrued liabilities      $
82,258,756   $ 76,231,392 
    Due to related parties                        
19,784,018      1,819,965 
    Total Current Liabilities                    
102,042,774     78,051,357 
    Convertible debenture, 
     net of discount of $2,100,823                 
1,149,177              - 
    Warrants and conversion feature                
3,070,062              - 
    Loans from related parties                             
-     19,514,229 
    Total Liabilities                            
106,262,013     97,565,586 
    Non-controlling interest                       
4,247,216      4,973,683 
    Shareholders' Equity (Deficiency) Commitments   
    Common stock, $0.00001 par value, authorized  
     500,000,000, outstanding 61,779,765                 
618            618 
    Additional paid-in capital                     
8,900,141      5,855,525 
    Accumulated other comprehensive Income            
10,984             53 
    Accumulated deficit                          
(13,852,094)    (5,651,870)
    Total Shareholders' Equity (Deficiency)       
(4,940,351)       204,326 
    Total Liabilities and Shareholders' Equity  
$105,568,878    102,743,595 


Xinhua China Ltd.
(formerly Camden Mines Limited)

CONSOLIDATED STATEMENT OF OPERATIONS
(Expressed in U.S. dollars)
(Unaudited)

                                     3 months       9
months      12 months 
                                       Ended          Ended
         Ended   
                                   Mar. 31, 2006  Mar. 31,
2006  June 30, 2005  
    Revenue 
    Sales revenue                    $ 7,780,796   
$32,996,625   $15,496,537 
    Cost of sales                      6,863,891    
29,368,713    13,584,466 
    Gross profit                         916,905     
3,627,912     1,912,071 

    Expenses 
    Selling, general and  
     administrative                    5,124,987    
11,400,995     7,745,987 

    Operating loss before interest,        
     other income (expense) and  
     income tax                       (4,208,082)   
(7,773,083)   (5,833,916)
    
    Interest and other income             38,966       
291,241        66,430 
    Interest expense                  (1,419,077)   
(2,204,544)     (520,875)
    Income tax                                 -           
  -             - 
    Loss before non-controlling                      
     interest                         (5,588,193)   
(9,686,386)   (6,288,361)
    Non-controlling interests share                        
             
     of loss                           1,229,568     
1,486,162       636,491 
    Net loss for the period          $(4,358,625)  
$(8,200,224)  $(5,651,870)
    Loss per share - basic and                             
          
     diluted                         $     (0.07)   $    
(0.13)  $     (0.10)

    Weighted average number of                             
             
     shares outstanding                                    
             
         - Basic and diluted          61,779,765    
61,779,765    55,733,786 


    At Xinhua China Ltd.:                  
     Alex Helmel                            
     Investor Relations                     
     Tel:   [phone] or [phone]     
     Email: [e-mail]

    At The Investor Relations Company:
     Woody Wallace or Michael Arneth
     Tel:   [phone]

SOURCE  Xinhua China Ltd.