Specific Terms and Conditions for Exploration Rights Transfer

i)   Time: one year since the date of issuance of the exploration  license or once the mineral  resources are discovered for further exploration or exploitation within the exploration area.

ii) Investment: completion of the minimum exploration investment. RMB2,000 / km² for the first exploration year; RMB5,000 / km² for the second exploration year; RMB10,O00 / km² for the third exploration year. If the investment by the mineral prospecting rights holder is higher than the specified quota, the exceeded amount will be counted into the exploration investment for the next exploration year. If the exploration work is not able to be continued normally due to force majeure such as natural disasters, the exploration rights holder may submit a report to apply for a deduction to the minimum  exploration  investment from  the  registration authority and the authority should approve and respond within 30 days of receiving the said report.

iii) Right ownerships: no disputes should exist over the mineral prospecting rights.

iv) Payment: the mineral prospecting rights license fee and price value have been duly paid according to the relevant government regulations.

v) Other conditions as defined by the geology and mineral resource authorities of the State Council.

Specific Terms and Conditions for Mineral Exploitation Rights Transfer

i) Time: one year since the mining enterprise started up the exploitation.

ii) Rights ownership: no disputes exist over the mineral exploitation rights.

iii) Payment: the mineral exploitation right license fee and price value, mineral resource indemnification fee as well as resources tax have been duly paid according to the relevant government regulations.

iv) Other conditions as defined by the geology and mineral resource authorities of the State Council.