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<SEC-DOCUMENT>0001116502-06-000507.txt : 20060308
<SEC-HEADER>0001116502-06-000507.hdr.sgml : 20060308
<ACCEPTANCE-DATETIME>20060308135345
ACCESSION NUMBER:		0001116502-06-000507
CONFORMED SUBMISSION TYPE:	6-K/A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060210
FILED AS OF DATE:		20060308
DATE AS OF CHANGE:		20060308

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHINA NATURAL RESOURCES INC
		CENTRAL INDEX KEY:			0000793628
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-ADVERTISING [7310]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26046
		FILM NUMBER:		06672527

	BUSINESS ADDRESS:	
		STREET 1:		ROOM 2105 WEST TOWER SHUN TAK CENTRE
		STREET 2:		200 CONNAUGHT ROAD C
		CITY:			SHEUNG WAN
		STATE:			K3
		ZIP:			-
		BUSINESS PHONE:		01185228107205

	MAIL ADDRESS:	
		STREET 1:		ROOM 2105 WEST TOWER SHUN TAK CENTRE
		STREET 2:		200 CONNAUGHT ROAD C
		CITY:			SHEUNG WAN HONG KONG
		STATE:			K3
		ZIP:			-

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHINA RESOURCES DEVELOPMENT INC
		DATE OF NAME CHANGE:	19950104

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MAGENTA CORP
		DATE OF NAME CHANGE:	19940217
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K/A
<SEQUENCE>1
<FILENAME>chinaresources6ka.htm
<DESCRIPTION>AMENDMENT TO FORM 6K
<TEXT>
<HTML>
<HEAD>
<TITLE>United States Securities & Exchange Commission EDGAR Filing</TITLE>
</HEAD>

<BODY style="FONT-SIZE: 10pt; COLOR: #000000; LINE-HEIGHT: 12pt; FONT-FAMILY: Times New Roman"><P style="MARGIN: 0pt" align=center><BR></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt; PADDING-BOTTOM: 3pt; BORDER-BOTTOM: #000000 3pt solid" align=right><FONT face="Times New Roman" color=#000000></FONT>&nbsp;</P>

<P style="BORDER-TOP: #000000 1pt solid; MARGIN: 0pt; PADDING-TOP: 3pt" align=center>&nbsp;</P>

<P style="FONT-SIZE: 16pt; MARGIN: 0pt; LINE-HEIGHT: 18pt" align=center><B>UNITED STATES<BR>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P style="MARGIN: 0pt" align=center><B>Washington, D.C. 20549</B></P>

<P style="MARGIN-TOP: 2.65pt; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 2.65pt; LINE-HEIGHT: 12.5pt" align=center><B><SUP>______________</SUP></B></P>

<P style="MARGIN-TOP: 16pt; FONT-SIZE: 16pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 18pt" align=center><B>Form 6-K/A1</B></P>

<P style="MARGIN-TOP: 2.65pt; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 2.65pt; LINE-HEIGHT: 12.5pt" align=center><B><SUP>______________</SUP></B></P>

<P style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align=center><B>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16<BR>UNDER THE SECURITIES EXCHANGE ACT OF 1934</B></P>

<P style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt" align=center><B>For the month of February&nbsp;2006</B></P>

<P style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt" align=center><B>Commission File Number 0-26046</B></P>

<P style="MARGIN-TOP: 2.65pt; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 2.65pt; LINE-HEIGHT: 12.5pt" align=center><B><SUP>______________</SUP></B></P>

<P style="MARGIN-TOP: 9pt; FONT-SIZE: 18pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 20pt" align=center><B>China Natural Resources, Inc.</B></P>

<P style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align=center>(Translation of registrant&#146;s name into English)</P>

<P style="MARGIN-TOP: 2.65pt; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 2.65pt; LINE-HEIGHT: 12.5pt" align=center><B><SUP>______________</SUP></B></P>

<P style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align=center><B>Room 2105, West Tower, Shun Tak Centre,<BR>200 Connaught Road C., Sheung Wan, Hong Kong</B></P>

<P style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align=center>(Address of principal executive offices)</P>

<P style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt">Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F&nbsp;&nbsp;<FONT face=Wingdings>&#253;</FONT>&nbsp;Form 40-F&nbsp;&nbsp;<FONT face=Wingdings>&#168;</FONT></P>

<P style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):&nbsp;&nbsp;<FONT face=Wingdings>&#168;</FONT></P>

<P style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):&nbsp;&nbsp;<FONT face=Wingdings>&#168;</FONT></P>

<P style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12b3-2(b) under the Securities Exchange Act of 1934. Yes&nbsp;&nbsp;<FONT face=Wingdings>&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;<FONT face=Wingdings>&#253;</FONT>.</P>

<P style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">If &#147;Yes&#148; is marked, indicated below the file number assigned to the registrant in connection with Rule 12b3-2(b): 82-_________.</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt; PADDING-BOTTOM: 3pt; BORDER-BOTTOM: #000000 1pt solid">&nbsp;</P>

<P style="BORDER-TOP: #000000 3pt solid; MARGIN: 0pt; PADDING-TOP: 3pt">&nbsp;</P>

<P style="MARGIN: 0pt"><BR></P>

<P style="MARGIN: 0pt"><BR><BR></P>

<HR style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noShade SIZE=1>

<P style="FONT-SIZE: 11pt; PAGE-BREAK-BEFORE: always; MARGIN: 0pt; LINE-HEIGHT: 13pt"><B>Acquisition of Feishang Mining Holdings Limited</B></P>

<P style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36pt">Effective on February&nbsp;3, 2006, China Natural Resources, Inc. consummated its acquisition of all of the issued and outstanding shares of capital stock of Feishang Mining Holdings Limited, and on February&nbsp;9, 2006, filed a Report on Form 6-K to disclose completion of that acquisition. The purpose of this filing is to amend the February&nbsp;9, 2006 Report on Form 6-K by filing certain financial statements and financial information, as more particularly identified below.</P>

<P style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><B>Financial Statements</B></P>

<P style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: 36pt">(a)</P>

<P style="MARGIN: 0pt; TEXT-INDENT: 72pt">The following audited consolidated financial statements of Wuhu Feishang Mining Development Ltd (&#147;WFM&#148;)* are filed herewith**:</P>

<P style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Index to Financial Statements of Wuhu Feishang Mining Development Co. Ltd.</FONT></P>

<P style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Report of Independent Registered Public Accounting Firm</FONT></P>

<P style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Statements of Operations for the Year Ended December&nbsp;31, 2002, Four Months Ended April&nbsp;30, 2003, Eight Months Ended December&nbsp;31, 2003 and Year Ended December&nbsp;31, 2004</FONT></P>

<P style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Balance Sheets as of December&nbsp;31, 2003 and 2004</FONT></P>

<P style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Statements of Cash Flows for the Year Ended December&nbsp;31, 2002, Four Months Ended April&nbsp;30, 2003, Eight Months Ended December&nbsp;31, 2003 and Year Ended December&nbsp;31, 2004</FONT></P>

<P style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Statements of Equity for the Year Ended December&nbsp;31, 2002, Four Months&nbsp;Ended April&nbsp;30, 2003, Eight Months Ended December&nbsp;31, 2003 and Year Ended December&nbsp;31, 2004</FONT></P>

<P style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Notes to Financial Statements</FONT></P>

<P style="MARGIN: 0pt">____________</P>

<P style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 24pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -24pt">*</P>

<P style="PADDING-LEFT: 24pt; MARGIN: 0pt">For the periods indicated, financial statements of Feishang Mining Holdings Limited, the holding company parent of WFM, are not presented as its accounts are insignificant and are not deemed material to an understanding of the operations of WFM or the consolidated operations of Feishang Mining Holdings Limited.</P>

<P style="MARGIN-TOP: 2.5pt; PADDING-LEFT: 24pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -24pt">**</P>

<P style="PADDING-LEFT: 24pt; MARGIN: 0pt">Incorporated by reference to Schedule 1(b) of the Acquisition Agreement filed as Exhibit 10.1 to the Company&#146;s Report on Form 6-K filed January&nbsp;25, 2006.</P>

<P style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: 36pt">(b)</P>

<P style="MARGIN: 0pt; TEXT-INDENT: 72pt">The following unaudited consolidated financial statements of Feishang Mining Holdings Limited* are filed herewith:</P>

<P style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Index to Unaudited Consolidated Financial Statements of Feishang Mining Holdings Limited</FONT></P>

<P style="MARGIN-TOP: 2.5pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Unaudited Consolidated Statements of Operations for the Nine Months ended September&nbsp;30, 2004 and 2005</FONT></P>

<P style="MARGIN-TOP: 2.5pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Unaudited Consolidated Balance Sheet as of September&nbsp;30, 2005</FONT></P>

<P style="MARGIN-TOP: 2.5pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Unaudited Consolidated Statements of Cash Flows for the Nine Months ended September&nbsp;30, 2004 and 2005</FONT></P>

<P style="MARGIN-TOP: 2.5pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Unaudited Consolidated Statement of Equity for the Nine Months ended September&nbsp;30, 2005</FONT></P>

<P style="MARGIN-TOP: 2.5pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Notes to Unaudited Consolidated Financial Statements</FONT></P>

<P style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt">____________</P>

<P style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 24pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -24pt">*</P>

<P style="PADDING-LEFT: 24pt; MARGIN: 0pt">The unaudited consolidated financial statements of Feishang Mining Holdings Limited, the holding company of WFM, are prepared to consolidate the operations of WFM.</P>

<P style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><BR><BR></P>

<HR style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noShade SIZE=1>

<P style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; PAGE-BREAK-BEFORE: always; LINE-HEIGHT: normal"><B>Pro Forma Financial Information</B></P>

<P style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">The following pro forma financial information is filed herewith:</P>

<P style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Pro Forma Consolidated Financial Information (Unaudited)</FONT></P>

<P style="MARGIN-TOP: 2.5pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Pro Forma Consolidated Balance Sheet (Unaudited)&nbsp;as at September&nbsp;30, 2005</FONT></P>

<P style="MARGIN-TOP: 2.5pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Notes to&nbsp;Pro Forma Consolidated Balance Sheet (Unaudited)</FONT></P>

<P style="MARGIN-TOP: 2.5pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Pro Forma Consolidated Statement of Operations (Unaudited)&nbsp;Nine Months ended September&nbsp;30, 2005</FONT></P>

<P style="MARGIN-TOP: 2.5pt; PADDING-LEFT: 108pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt; FONT-FAMILY: Symbol"><FONT face=Symbol>&#183;</FONT></P>

<P style="PADDING-LEFT: 108pt; MARGIN: 0pt"><FONT face="Times New Roman">Pro Forma Consolidated Statement of Operations (Unaudited)&nbsp;Year ended December&nbsp;31, 2004</FONT></P>

<P style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt"><B>Exhibits</B></P>

<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR>
<TD width=48></TD>
<TD width=17></TD>
<TD width=402></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=64>
<P style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align=center><B>Exhibit No.</B></P>
</TD>
<TD vAlign=bottom width=23>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=536>
<P style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt"><B>Description</B></P>
</TD></TR>
<TR>
<TD vAlign=bottom width=64>
<P style="MARGIN: 0pt" align=center>10.1</P>
</TD>
<TD vAlign=bottom width=23>
<P style="MARGIN: 0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD>
<TD vAlign=bottom width=536>
<P style="MARGIN: 0pt">Acquisition Agreement dated January&nbsp;24, 2006 (1).</P>
</TD></TR>
<TR>
<TD vAlign=bottom width=64>
<P style="MARGIN: 0pt" align=center>10.2</P>
</TD>
<TD vAlign=bottom width=23>&nbsp;</TD>
<TD vAlign=bottom width=536>
<P style="MARGIN: 0pt">Form of Common Stock Purchase Warrant issued to Feishang Group Limited (2).</P>
</TD></TR>
<TR>
<TD vAlign=bottom width=64>
<P style="MARGIN: 0pt" align=center>10.3</P>
</TD>
<TD vAlign=bottom width=23>&nbsp;</TD>
<TD vAlign=bottom width=536>
<P style="MARGIN: 0pt">Exchange Agreement dated January&nbsp;24, 2006 by and between China Natural Resources, Inc.<BR>and Winsland Capital Limited. (3)</P>
</TD></TR>
</TABLE>


<P style="PADDING-LEFT: 36pt; MARGIN: 0pt; TEXT-INDENT: -36pt">____________</P>

<P style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt">(1)</P>

<P style="PADDING-LEFT: 36pt; MARGIN: 0pt">Filed as Exhibit 10.1 to the Current Report on Form 6-K filed by China Natural Resources, Inc. on January&nbsp;25, 2006 and hereby incorporated by reference.</P>

<P style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt">(2)</P>

<P style="PADDING-LEFT: 36pt; MARGIN: 0pt">Filed as Schedule 3 to Exhibit 10.1 to the Current Report on Form 6-K filed by China Natural Resources, Inc. on January&nbsp;25, 2006 and hereby incorporated by reference.</P>

<P style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt">(3)</P>

<P style="PADDING-LEFT: 36pt; MARGIN: 0pt">Filed as Exhibit 10.3 to Current Report on Form 6-K filed by China Natural Resources, Inc. on February&nbsp;9, 2006 and hereby incorporated by reference.</P>

<P style="MARGIN: 0pt" align=center><BR><BR></P>

<HR style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noShade SIZE=1>

<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align=center><B>SIGNATURES</B></P>

<P style="MARGIN-TOP: 15pt; MARGIN-BOTTOM: 15pt; TEXT-INDENT: 36pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunder duly authorized.</P>

<P style="MARGIN-TOP: 15pt; MARGIN-BOTTOM: 15pt">Date: March&nbsp;8,&nbsp;2006</P>

<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR>
<TD width=258></TD>
<TD width=20></TD>
<TD width=188></TD></TR>
<TR>
<TD vAlign=top width=345>&nbsp;</TD>
<TD vAlign=top width=279 colSpan=2>
<P style="MARGIN: 0pt"><B>CHINA&nbsp;NATURAL&nbsp;RESOURCES,&nbsp;INC.</B></P>
</TD></TR>
<TR>
<TD vAlign=top width=345>&nbsp;</TD>
<TD vAlign=top width=27>&nbsp;</TD>
<TD vAlign=top width=251>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=345>&nbsp;</TD>
<TD vAlign=top width=27>&nbsp;</TD>
<TD vAlign=top width=251>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=345>&nbsp;</TD>
<TD vAlign=top width=27>
<P style="MARGIN: 0pt" align=right>By:&nbsp;&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=251>
<P style="MARGIN: 0pt; LINE-HEIGHT: normal">/s/&nbsp;<SMALL>&nbsp;<BIG>L<SMALL>I<BIG> F<SMALL>EILIE</SMALL></P>
</BIG></SMALL></BIG></SMALL></TD></TR>
<TR>
<TD vAlign=top width=345>&nbsp;</TD>
<TD vAlign=top width=27>&nbsp;</TD>
<TD vAlign=top width=251>
<P style="MARGIN: 0pt">Li Feilie </P>
</TD></TR>
<TR>
<TD vAlign=top width=345>&nbsp;</TD>
<TD vAlign=top width=27>&nbsp;</TD>
<TD vAlign=top width=251>
<P style="MARGIN: 0pt">Chief Executive Officer</P>
</TD></TR>
</TABLE>


<P style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><BR></P>

<P style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><BR><BR></P>

<HR style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noShade SIZE=1>

<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align=center><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>INDEX TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="90%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="9%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>Pages</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>
<A href="#A001">Consolidated statements of operations</A></FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>F-1</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>
<A href="#A002">Consolidated balance sheet</A></FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>F-2</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>
<A href="#A003">Consolidated statements of cash flows</A></FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>F-3 &#150; F-4</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>
<A href="#A004">Consolidated statement of equity</A></FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>F-5</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>
<A href="#A005">Notes to consolidated financial statements</A></FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>F-6 &#150; F-18</FONT></P>
</TD></TR>
</TABLE>

<BR>
<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED<BR>
<A name=A001></A>CONSOLIDATED STATEMENTS OF OPERATIONS<BR></B><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005 <BR>UNAUDITED<BR>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="58%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=top width="5%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=8>
<P align=center><FONT size=1>Nine months ended September 30,</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom colSpan=8>&nbsp; </TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1>Notes</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>2004</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>2005</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>2005</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>US$</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>NET SALES</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>54,842</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>69,966</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>8,659</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>COST OF SALES</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(21,778</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(23,376</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(2,893</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>GROSS PROFIT</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>33,064</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>46,590</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,766</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>SELLING, GENERAL AND ADMINISTRATIVE EXPENSES</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(5,208</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(10,150</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(1,256</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>INCOME FROM OPERATIONS</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>27,856</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>36,440</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,510</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>INTEREST INCOME</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>118</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>685</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>85</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>OTHER INCOME (EXPENSE), NET</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>4</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>51</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(24</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(3</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>28,025</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>37,101</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,592</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>INCOME TAXES</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=2>5</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(5,894</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(729</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>INCOME FROM CONTINUING OPERATIONS</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>28,025</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>31,207</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,863</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>DISCONTINUED OPERATIONS</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Income from discontinued bleaching earth segment</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>3</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>12</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>NET INCOME</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>28,037</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>31,207</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,863</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
</TABLE>



<P><FONT size=2>The accompanying notes are an integral part of these financial statements.</FONT></P>

<P align=center><FONT size=2>F-1</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED<BR>
<A name=A002></A>CONSOLIDATED BALANCE SHEET<BR></B><B>SEPTEMBER 30, 2005<BR>UNAUDITED<BR>(Amounts in thousands</B><B>, except share and per share data)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="71%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=top width="4%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="5%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1>Notes</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>US$</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>ASSETS</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>CURRENT ASSETS</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Cash and cash equivalents</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>47,140</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,834</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Trade receivables, net of allowance of RMB137</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>573</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>71</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Bills receivable</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>550</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>68</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Other receivables, deposits and prepayments</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>646</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>80</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Amount due from related companies</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>9</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>72,243</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>8,941</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Inventories</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>6</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,150</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>637</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>TOTAL CURRENT ASSETS</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>126,302</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>15,631</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>PROPERTY AND EQUIPMENT, NET</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>7</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>34,684</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,293</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>TOTAL ASSETS</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>160,986</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>19,924</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>LIABILITIES AND EQUITY</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>CURRENT LIABILITIES</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Accounts payable</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>474</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>59</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Other payables</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>8</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>17,090</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,115</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Advances from suppliers</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>6,686</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>828</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Accrued liabilities</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,053</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>254</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Amount due to a director</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>9</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>23,644</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,926</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Amount due to a related company</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>9</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>25,115</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,108</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Dividends payable</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>44,005</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,446</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Taxes payable</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,106</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>632</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>TOTAL LIABILITIES &#150; ALL CURRENT</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>124,173</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>15,368</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>EQUITY</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Share capital</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Authorized &#150; 50,000 shares US$1 par value</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Issued &#150; 1 share</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>12</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Reserves</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,912</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>484</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Other comprehensive income</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>227</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>28</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Retained earnings</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>32,674</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,044</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>TOTAL EQUITY</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>36,813</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,556</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>TOTAL LIABILITIES AND EQUITY</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>160,986</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>19,924</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
</TABLE>



<P><FONT size=2>The accompanying notes are an integral part of these financial statements.</FONT></P>

<P align=center><FONT size=2>F-2</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED<BR>
<A name=A003></A>CONSOLIDATED STATEMENTS OF CASH FLOWS<BR></B><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED<BR>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="69%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="5%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="5%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=8>
<P align=center><FONT size=1>Nine months ended September 30,</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom colSpan=8>&nbsp; </TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>2004<BR>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>2005<BR>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>2005<FONT size=1><BR>US$</FONT></FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>OPERATING ACTIVITIES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Net income</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>28,037</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>31,207</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,863</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Adjustments to reconcile net income to net cash provided by operating activities:</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Depreciation</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,245</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,164</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>144</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Amortization of mining rights</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>207</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>267</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>33</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Gain on disposal of property and equipment</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(16</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(2</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Changes in operating assets and liabilities:</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Trade receivables</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,524</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>139</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>17</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Bills receivable</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>320</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>497</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>62</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Inventories</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>627</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(1,632</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(202</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Other receivables, deposits and prepayments</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(886</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(227</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(28</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Accounts payable</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(581</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(876</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(108</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Other payables</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,262</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,511</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>187</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Advances from suppliers</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(2,377</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,486</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>555</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Accrued liabilities</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(290</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>547</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>68</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Taxes payable</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>90</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,956</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>365</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Discontinued operations</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>886</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Net cash provided by operating activities</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>31,064</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>40,023</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,954</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>INVESTING ACTIVITIES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Advances to related companies</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(22,398</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(52,121</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(6,451</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Amount due to a director</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>8</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>11,213</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,388</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Repayment from related companies</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>30,000</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,713</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Purchases of property and equipment</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(1,632</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(1,871</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(232</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Proceeds from disposal of property and equipment</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>22</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=2>Net cash used in investing activities</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(24,022</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(12,757</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(1,579</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>(Continued)</FONT></P>

<P style="MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT size=2>F-3</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED<BR>CONSOLIDATED STATEMENTS OF CASH FLOWS<BR></B><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED<BR>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="64%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom noWrap colSpan=8>
<P align=center><FONT size=1>Nine months ended September 30,</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom colSpan=8>&nbsp; </TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2004<BR>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2005<BR>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2005<BR>US$</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>NET INCREASE IN CASH AND CASH EQUIVALENTS</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>7,042</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>27,266</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,375</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>EFFECT OF EXCHANGE RATES ON CASH</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>227</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>28</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>CASH AND CASH EQUIVALENTS, BEGINNING</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>10,519</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>19,647</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,431</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>CASH AND CASH EQUIVALENTS, ENDING</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>17,561</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>47,140</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,834</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Supplemental disclosure of cash flow information:</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Cash paid for:</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Income taxes</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,797</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>346</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Supplemental disclosure of non-cash investing and financing activities:</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Dividends declared</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>44,005</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,446</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Amount due from related company for sale of assets of discontinued operations</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>8,050</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Offset other receivables against amount due to a related company</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(68</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>- </FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
</TABLE>



<P><FONT size=2>The accompanying notes are an integral part of these financial statements.</FONT></P>

<P align=center><FONT size=2>F-4</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED<BR>
<A name=A004></A>CONSOLIDATED STATEMENT OF </B><B>EQUITY<BR>NINE MONTHS ENDED SEPTEMBER 30, 2005<BR>UNAUDITED<BR>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="30%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="10%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Share<BR>capital</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Share<BR>capital</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Reserves</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Retained<BR>earnings</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Other<BR>comprehensive<BR>income</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Total</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top colSpan=2>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top colSpan=2>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top colSpan=2>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top colSpan=2>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top colSpan=2>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top colSpan=2>&nbsp; </TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Shares</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Balances at January 1, 2005</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>49,384</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>49,384</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Transfer to reserves</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,912</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(3,912</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Dividends declared</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(44,005</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(44,005</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Net income for the period</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>31,207</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>31,207</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Currency translation adjustments</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>227</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>227</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Comprehensive income</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>31,434</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Balances at September 30, 2005</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,912</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>32,674</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>227</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>36,813</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
</TABLE>



<P><FONT size=2>The accompanying notes are an integral part of these financial statements.</FONT></P>

<P align=center><FONT size=2>F-5</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center>
<A name=A005></A><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

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<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=2>1.</FONT></P>
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<P><FONT size=2>ORGANIZATION, PRINCIPAL ACTIVITIES AND INTERIM FINANCIAL STATEMENTS</FONT></P>
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<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=2>Feishang Mining Holdings Limited (&#147;FMH&#148; or the &#147;Company&#148;) is a British Virgin Islands company which was incorporated on September 3, 2004. The Company beneficially owns 100% Wuhu Feishang Mining Development Co. Ltd. (&#147;WFM&#148;) (The Company and WFM, collectively, the &#147;Group&#148;).</FONT></P>
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<P><FONT size=1></FONT>&nbsp;</P>
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<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 95%; PADDING-TOP: 0in" vAlign=top width="95%">

<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=2>WFM was established as a Sino-foreign joint venture company in the PRC with the venturers being Wuhu Feishang Enterprise Development Limited (&#147;WFE&#148;) (&#147;50%&#148;) and FIH (&#147;50%&#148;) on June 21, 2002 with a tenure of 20 years from the date of the business license. The tenure can be extended by agreement between the joint venture partners with the necessary approval from the relevant government agencies. The registered capital of WFM is RMB12,000 (US$1,485), of which RMB6,000 (US$743) was each contributed by WFE and FIH. In May 2003, WFM acquired the entire business of Anhui Fanchang Zinc and Iron Mine (the &#147;Predecessor&#148;).</FONT></P>
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<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=2>In April 2005, WFE and FIH transferred their interests in WFM to the Company at cost. No gain or loss was recognized, as the transfer was accounted for as a transfer between entities under common control as WFE, FIH and FMH are all controlled by the same individual, Mr. Li Feilie.</FONT></P>
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<P><FONT size=1></FONT>&nbsp;</P>
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<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 95%; PADDING-TOP: 0in" vAlign=top width="95%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
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<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 95%; PADDING-TOP: 0in" vAlign=top width="95%">

<P><FONT size=2>The Company&#146;s operations are conducted through WFM, a mining enterprise principally engaged in the mining of zinc, iron activated bleaching earth, metallurgy bentonite and other minerals for distribution in the People&#146;s Republic of China (&#147;PRC&#148;). In early 2004, WFM sold its mining business in activated bleaching earth and metallurgy bentonite to Wuhu Feishang Non-Metal Material Co. Ltd. (&#147;WFNM&#148;), a related party, for consideration of RMB8,050 (US$996). WFM owns the mining rights to two mines: Yang-chong Mine contains iron and zinc minerals and Zao-yun Mine contains mainly iron minerals. The cash flows and profitability of WFM&#146;s current operations are significantly affected by the market price of zinc and iron. These commodity prices can fluctuate widely and are affected by factors beyond WFM&#146;s control.</FONT></P>
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<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
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<P><FONT size=1></FONT>&nbsp;</P>
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<P><FONT size=2>The consolidated balance sheet as of September 30, 2005, the consolidated statements of operations and cash flows for the nine months ended September 30, 2004 and 2005, and the consolidated statement of equity for the nine months ended September 30, 2005 have been prepared by the Company without audit. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all such periods have been made.</FONT></P>
</TD></TR>
</TABLE>


<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2>F-6</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE style="WIDTH: 100%; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
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<P><FONT size=2>2.</FONT></P>
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<P><FONT size=2>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</FONT></P>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD>
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<P><FONT size=2>(a)</FONT></P>
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<P><FONT size=2><U>Accounting principles</U></FONT></P>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2>The financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (&#147;US GAAP&#148;).</FONT></P>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=2>(b)</FONT></P>
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<P><FONT size=2><U>Use of estimates</U></FONT></P>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2>The preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</FONT></P>
</TD></TR>
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<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=2>(c)</FONT></P>
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<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2><U>Cash and cash equivalents</U></FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2>The Company considers all highly liquid investments and cash deposits with financial institutions with original maturities of three months or less to be cash equivalents.</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=2>(d)</FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2><U>Inventories</U></FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2>Inventories are stated at the lower of average cost or net realizable value. For products, we determine net realizable value by estimating value based on current metals prices, less cost to convert stockpiled and in-process inventories to finished products. Major types of inventories include:</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">
<P style="MARGIN-LEFT: 17.3pt"><FONT size=2>Raw materials consists of raw ore extracted and auxiliary material &#150; costs are limited to those directly related to mining</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">
<P style="MARGIN-LEFT: 17.3pt">&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">
<P style="MARGIN-LEFT: 17.3pt"><FONT size=2>Work in progress consists of semi-finished iron and zinc ore &#150; valued at the cost of production through the point at which inventory has been processed</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">
<P style="MARGIN-LEFT: 17.3pt">&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">
<P style="MARGIN-LEFT: 17.3pt"><FONT size=2>Finished goods &#150; valued at the lower of full cost of production or net realizable value based on current metal prices</FONT></P>
</TD></TR>
</TABLE>


<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2>F-7</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt"><FONT size=2></FONT>&nbsp;</P>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="90%" colSpan=2>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>2.</FONT></P>
</TD>
<TD vAlign=top colSpan=3>

<P><FONT size=2>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(e)</FONT></P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2><U>Property and equipment</U></FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>Property and equipment are stated at cost less accumulated depreciation. Expenditures for routine repairs and maintenance are expensed as incurred.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>Depreciation is calculated on the straight-line basis to write off the cost less estimated residual value of each asset over its estimated useful life.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>In April 2004, the FASB issued FASB Staff Position (&#147;FSP&#148;) FAS 141-1 and FAS 142-1 &#147;Interaction of FASB Statements No. 141, Business Combinations, and No. 142, Goodwill and Other Intangible Assets, and Emerging Issues Task Force (&#147;EITF&#148;) Issue 04-2, &#147;Whether Mineral Rights are Tangible or Intangible Assets&#148;. This FSP amends SFAS Nos. 141 and 142 and requires mineral rights to be accounted for as tangible assets based on the consensus reached in EITF 04-2.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>The Company has determined that its mining rights are mineral rights, and accordingly are classified as property and equipment.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>Mining rights are stated at cost less accumulated amortization and any impairment losses. The mining rights are amortized based on actual units of production over the proven and probable reserves of the mines, not to exceed 20 years. The weighted average amortization period for these reserves is 17 years as of September 30, 2005. Reserves designated as proven and probable are supported by a study indicating that the reserves have had the requisite geological, technical and economic work performed, and are legally extractable at the time of reserve determination. The Company&#146;s rights to extract minerals are contractually limited by time. However, the Company believes that it will be able to extend licenses, as it has in the past, without incurring substantial costs, and therefore, believes that assigned lives are appropriate. All costs, other than acquisition costs, are expensed prior to the establishment of proven and probable reserves. Once proven and probable reserves are
established, all development and other site specific costs are capitalized, including general and administrative charges for actual time and expenses incurred in connection with site supervision.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>Estimated useful lives are as follows:</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Buildings and mine development </FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>15 - 35 years</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Machinery and equipment </FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>&nbsp;&nbsp;6 - 15 years</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Motor vehicles </FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8 years</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Mining rights </FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17 years</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>F-8</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="90%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>2.</FONT></P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(e)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2><U>Property and equipment</U><U> (continued)</U></FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Management assesses the carrying values of its long-lived assets for impairment when circumstances warrant such a review. Generally, long-lived assets are considered impaired if the estimated fair value is less than the assets&#146; carrying values. If an impairment is indicated, the loss is measured based on the amounts by which the carrying values of the assets exceed their fair values.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(f)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2><U>Revenue recognition</U></FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Revenue from product sales is recognized when title passes to the customer in accordance with the sales agreement, generally upon product acceptance by the customer.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Freight and handling costs paid to third party carriers are recorded as cost of sales.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(g)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2><U>Income taxes</U></FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(h)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2><U>Foreign currency translation</U></FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The functional currency of all the operations of the Company is the Renminbi (&#147;RMB&#148;), the national currency of the PRC.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Transactions denominated in currencies other than the RMB are translated into RMBs at the applicable rates of exchange prevailing at the dates of the transactions. Monetary assets and liabilities denominated in other currencies have been translated into RMBs at the rate of exchange at the balance sheet date. The resulting exchange gains or losses are credited or charged to the consolidated statements of operations.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The financial statements are stated in RMB. The translation of amounts from RMB into US$ is included solely for the convenience of the reader and has been made at the rate of exchange quoted by the People&#146;s Bank of China on September 30, 2005 of US$1.00 = RMB8.08 (unaudited). No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on September 30, 2005 or at any other date.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(i)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2><U>Interest income</U></FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Interest on bank balances is recorded when earned.</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>F-9</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="90%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>2.</FONT></P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(j)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2><U>Recently issued accounting pronouncements</U></FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>In December 2004, the Financial Accounting Standards Board (&#147;FASB&#148;) issued SFAS No. 123 (R) &#147;Share Based Payment&#148; which addresses the accounting for share-based payment transactions. SFAS No. 123 (R) eliminates the ability to account for share-based compensation transactions using APB No. 25, and generally requires instead that such transactions be accounted and recognized in the statement of income based on their fair values. SFAS No. 123 (R) will be effective for public companies that file as small business issuers as of the first interim period in fiscal years that begin after December 15, 2005. The Company is evaluating the provisions of SFAS No. 123 (R). Depending upon the numbers and terms of options that may be granted in future periods, the implementation of this standard could have a material impact on the Company&#146;s financial position and results of operations.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>In March 2005, the Emerging Issues Task Force (&#147;EITF&#148;) issued EITF 04-6, &#147;Accounting for Stripping Costs Incurred during Production in the Mining Industry&#148;. EITF 04-6 requires that stripping costs incurred during the production phase of a mine should be included in the cost of inventory produced during the period the stripping costs are incurred. EITF 04-6 is effective for the first reporting period in fiscal years beginning after December 15, 2005, with initial adoption being accounted for in a manner similar to a cumulative-effect adjustment. Management is assessing the impact that the adoption of EITF 04-6 will have on its financial statements.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>3.</FONT></P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>DISCONTINUED OPERATIONS</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>Pursuant to a January 1, 2004 agreement, WFM disposed of its interest in the mining of activated bleaching earth operations to a related party, Wuhu Feishang Non-Metal Material Co. Ltd. (&#147;WFNM&#148;) for total consideration of RMB8,050 (US$972), which has been included as an amount due from a related company at September 30, 2005. Inventories of the bleaching earth segment with a carrying value of RMB796 (US$96) were not sold to WFNM and were sold by WFM to unrelated third parties in 2004. The sale price of the bleaching earth segment equaled its carrying value and accordingly there was no gain or loss on the sale. As a result of the disposition, WFM has ceased its activated bleaching earth operations. The results of the activated bleaching earth segment have been retroactively restated as discontinued operations. Revenues from the discontinued activated bleaching earth segment were RMB808 (US$98) and nil, respectively, for the nine months ended September 30, 2004 and 2005. Income
before income taxes from the discontinued activated bleaching earth segment was RMB12 (US$1) and nil, respectively, for the nine months ended September 30, 2004 and 2005. Cash flows from discontinued operations of RMB886 (US$830) are from operating activities. There were no cash flows from discontinued operations from investing or financing activities.</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>F-10</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="95%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>4.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>OTHER INCOME(EXPENSE), NET</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Other income (expense), net represents:</FONT></P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="6%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="69%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom noWrap colSpan=8>
<P align=center><FONT size=1>Nine months ended September 30,</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom colSpan=8>&nbsp; </TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2004<BR>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2005<BR>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2005<BR>US$</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Gain on disposal of property &amp; equipment</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>16</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Other</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>51</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(40</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(5</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>51</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(24</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(3</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="95%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>5.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>INCOME TAXES</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Pre-tax income for the nine months ended September 30, 2004 and 2005 was taxable in the PRC.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The reconciliation of income taxes/(tax benefit) computed at the PRC federal statutory tax rate applicable to foreign investment enterprises operating in Anhui Province in the PRC, to income tax expense is as follows:</FONT></P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="6%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="64%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom noWrap colSpan=8>
<P align=center><FONT size=1>Nine months ended September 30,</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom colSpan=8>&nbsp; </TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2004<BR>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2005<BR>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2005<BR>US$</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>PRC Federal statutory tax rate</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>30</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>%</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>30</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>%</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>30</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>%</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Computed expected income tax expense</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>8,670</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>11,788</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,458</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Non-deductible expenses</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Preferential tax treatment</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(8,670</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(5,894</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(729</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Income tax expense</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,894</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>729</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="95%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>WFM is governed by the Income Tax Laws of the PRC. Being a Sino-foreign joint venture, the Company is exempt from income taxes for a period of two years commencing from its first profitable year and is entitled to a preferential income tax rate of 15% for three consecutive years commencing from its third profitable year. Thereafter, income will be taxed at the full rate of 30%.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Under the current laws of the BVI, dividends and capital gains arising from the Company&#146;s investments in the BVI are not subject to income taxes and no withholding tax is imposed on payments of dividends to the Company.</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>F-11</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="95%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>6.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>INVENTORIES</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>At September 30, 2005, inventories consisted of:</FONT></P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="72%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>US$</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Raw materials</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,212</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>274</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Work in progress</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>486</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>60</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Finished goods</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,452</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>303</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,150</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>637</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="95%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>7.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>PROPERTY AND EQUIPMENT</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>At September 30, 2005, property and equipment consisted of:</FONT></P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="72%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>US$</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>At cost:</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Buildings and mine development</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>23,802</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,946</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Machinery and equipment</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,603</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>570</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Motor vehicles</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,214</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>150</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Mining rights</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>9,229</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,142</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>38,848</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,808</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Accumulated depreciation and depletion</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(4,164</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(515</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>34,684</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,293</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="95%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>At September 30, 2005, accumulated depreciation and depletion included accumulated depletion of mining rights of RMB786.</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>F-12</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="95%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>8.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>OTHER PAYABLES</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>At September 30, 2005, other payables consisted of:</FONT></P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="72%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>US$</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Fanchang County Economic Development Department (a)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,257</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>279</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Natural resources fee (b)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,932</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>487</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Staff compensation fund (c)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,211</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>521</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Provision for staff bonus and welfare (f)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>978</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>121</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Provision for production maintenance (d)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,733</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>462</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Safety management fee (e)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,297</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>161</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Other</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>682</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>84</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>17,090</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,115</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="90%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(a)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>This balance represents a liability assumed by WFM upon acquisition of the entire business of the Predecessor.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(b)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Natural resources fee represents fees payable to the PRC Government and is calculated as a percentage of sales. WFM has no asset retirement obligations in connection with its mining operations.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(c)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The staff compensation fund represents a PRC government required contribution to a fund established to compensate employees for the loss of their state-sponsored pension and post employment benefits. The fund will be distributed to employees at the termination of their employment with WFM. WFM is not required to make any additional contributions to the fund.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(d)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The provision for production maintenance represents a PRC government required contribution for future mine maintenance and production. It is calculated based on tons of ore extracted.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(e)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The safety management fee represents a PRC required contribution for accident prevention programs and accident related costs. The safety management fee is calculated as a percentage of sales.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(f)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The provision for staff bonus and welfare represents a PRC government required contribution and is calculated as a percentage of the PRC net income.</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>F-13</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="95%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>9.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>RELATED PARTY BALANCES AND TRANSACTIONS</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>At September 30, 2005, amounts due from related companies and to and from a shareholder comprise:</FONT></P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="72%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>US$</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Due from related companies</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Anhui Xinke New Materials Co. Ltd. (&#147;Xinke&#148;)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>20,068</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,484</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Pingxiang Iron and Stell Co. Ltd. (&#147;Pingxiang&#148;)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>25,000</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,094</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Wuhu Feishang Non-Metal Material Co. Ltd. (&#147;WFNM&#148;)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>18,175</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,249</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Wuhu Feishang Enterprise Development Co. Ltd. (&#147;WFE&#148;)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>9,000</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,114</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>72,243</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>8,941</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Due to a related company:</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Wuhu Feishang Enterprise Development Co. Ltd. (&#147;WFE&#148;)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>25,115</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,108</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt"><FONT size=2>Due to a director</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Mr. Li Feilie</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>23,644</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,926</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=top>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="90%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(a)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The amounts due from Xinke, Pingxiang and WFE represented advances made to them by WFM. The amount due from WFNM represented consideration for assets sold by WFM at no gain and expenses paid on behalf of WFNM. The amounts due from Pingxiang were settled subsequent to September 30, 2005 (see note 9(b)). The amount due to WFE represented liabilities assumed by the Company upon acquisition of the entire business of the Predecessor in 2003. The amount due to a director represents advances made by Mr. Li Feilie to the Company and expenses he paid on behalf of the Company.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The balance with Xinke is unsecured, bears interest at 5.22% per annum and is repayable on demand. The balances with the other related companies and director are unsecured, interest-free and are repayable on demand.</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>F-14</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="95%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>9.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>RELATED PARTY BALANCES AND TRANSACTIONS (continued)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The transactions with related companies are summarized as follows:</FONT></P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="63%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="5%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="5%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="5%">
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom noWrap colSpan=8>
<P align=center><FONT size=1>Nine months ended September 30,</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom colSpan=8>&nbsp; </TD>
<TD vAlign=bottom>
<P align=center>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2004<BR>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2005<BR>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>2005<BR>US$</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Sales of finished goods to WFNM</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>428</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Sales of finished goods to Pingxiang</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>57</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Purchases of raw materials from WFNM</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>82</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Sale of property and equipment to WFNM</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>8,050</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Expenses paid on behalf of WFNM</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>868</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,278</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>158</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>Interest income received from Xinke</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>515</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>64</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="90%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>Pingxiang and Xinke are controlled by Mr. Li Feilie who is also a director and beneficial shareholder of the Company.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(b)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>WFNM&#146;s obligation to WFM was assumed by WFE. On November 30, 2005, WFM and WFE agreed to offset this amount against the RMB25,115 owed by WFM to WFE.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(c)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>On September 25, 2003, WFM advanced RMB9,000 to WFE, a company controlled by Mr. Li.Feilie. On February 4, 2005, the Company advanced RMB25,000 to Pingxiang, a company controlled by Mr. Li Feilie. On February 28, 2005, the board of directors of WFM declared dividends of RMB44,005. On October 31, 2005 and November 30, 2005, the advances of RMB34,000 were offset against dividends payable to Mr. Li Feilie.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(d)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>On February 23, 2005, the Company advanced RMB20,068 to Xinke, a company controlled by Mr. Li Feilie.</FONT></P>
</TD></TR>
</TABLE>


<P style="MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT size=2>F-15</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P style="MARGIN-TOP: 8pt; TEXT-ALIGN: center" align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE style="WIDTH: 100%; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=2>10.</FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 95%; PADDING-TOP: 0in" vAlign=top width="95%" colSpan=2>

<P><FONT size=2>CONCENTRATION OF RISK</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 95%; PADDING-TOP: 0in" vAlign=top width="95%" colSpan=2>

<P><FONT size=2>Concentration of credit risk:</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 95%; PADDING-TOP: 0in" vAlign=top width="95%" colSpan=2>

<P><FONT size=2>Financial instruments that potentially subject the Group to significant concentration of credit risk consist principally of cash deposits, trade receivables and bills receivable.</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=2>(i)</FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2>Cash and cash deposits</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2>The Group maintains its cash and cash deposits primarily with various PRC State-owned banks. The Group performs periodic evaluations of the relative credit standing of those financial institutions.</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=2>(ii)</FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2>Trade receivables</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2>The Group ells zinc and iron products to companies in the PRC. Management considers that the Group&#146;s current customers are generally creditworthy and credit is extended based on an evaluation of the customers&#146; financial conditions and, therefore, generally collateral is not required. At September 30, 2005, the largest five customers accounted for 84% trade receivables. During the nine months ended September 30, 2004, three customers accounted 45%, 24% and 10%, respectively, of the Company&#146;s sales. During the nine months ended September 30, 2005, three customers accounted 61%, 13% and 10%, respectively, of the Company&#146;s sales.</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=2>(iii)</FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2>Bills receivable</FONT></P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign=top width="5%">

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign=top width="90%">

<P><FONT size=2>Bills receivable represent letters of credit obtained by the customers of the Group to finance purchases which have been presented to banks for payment after delivery of goods to customers. As of September 30, 2005, bills receivable amounted to RMB550 and their collectability was guaranteed by banks. The bills receivable have normal terms of maturity of six months.</FONT></P>
</TD></TR>
</TABLE>


<P style="TEXT-ALIGN: center" align=center><FONT size=2>F-16</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR>UNAUDITED</B></FONT></P>

<P align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="90%" colSpan=2>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>11.</FONT></P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>FAIR VALUE OF FINANCIAL INSTRUMENTS</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>The following methods and assumptions were used by the Group in estimating the fair value of its financial instruments:</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(i)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Cash and cash equivalents </FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The carrying amount reported in the consolidated balance sheet for cash and cash equivalents approximate their fair value.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(ii)</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Trade receivables, bills receivable, other receivables, accounts payable and other payables</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The carrying amounts reported in the consolidated balance sheet for trade receivables, bills receivable, other receivables, accounts payable and other payables approximate their fair values due to their short maturities.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>(iii)&nbsp;&nbsp;&nbsp;</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>Amounts due from/to related parties</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The fair values of amounts due from/to the related parties cannot be determined due to the related party nature of those balances.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>12.</FONT></P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>REGISTERED CAPITAL, RESERVES AND DISTRIBUTION OF PROFITS</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>The registered capital of WFM is RMB12 million, being WFE&#146;s and FIH&#146;s initial contributions of RMB6 million each upon the formation of WFM.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>In accordance with the relevant PRC regulations and the Articles of Association of WFM (the &#147;Articles of Association&#148;), appropriations of net income as reflected in its PRC statutory financial statements is to be allocated to each of the general reserve and enterprise expansion reserve, respectively, as determined by the resolution of the Board of Directors annually. </FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>On February 28, 2005, the Board of Directors approved appropriations of RMB1,956 and RMB1,956 to the general reserve and the enterprise expansive reserve, respectively. The Board of Directors also declared dividends of RMB44,005.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>On January 27, 2006, the Board of Directors approved appropriations of RMB1,709 and RMB1,709 to the general reserve and the enterprise expansive reserve, respectively. The Board of Directors also declared dividends of RMB38,462.</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>F-17</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2><B>FEISHANG MINING HOLDINGS LIMITED</B></FONT></P>

<P align=center><FONT size=2><B>NOTES TO </B><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P align=center><FONT size=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005<BR></B><B>UNAUDITED</B></FONT></P>

<P align=center><FONT size=2><B>(Amounts in thousands)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="95%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>13.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>FOREIGN CURRENCY EXCHANGE</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>The RMB is not freely convertible into foreign currencies.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>From January 1, 1994 through July 2, 2005, a single rate of exchange was quoted daily by the People&#146;s Bank of China (the &#147;Unified Exchange Rate&#148;). Beginning July 23, 2005, the rate of exchange was revalued by 2.1% and the RMB is now to fluctuate according to the value of a group of currencies (the &#147;managed float&#148;). However, the unification or managed float of the exchange rates does not imply convertibility of RMB into US$ or other foreign currencies. All foreign exchange transactions continue to take place either through the Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People&#146;s Bank of China.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=2>14.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=2>SUBSEQUENT EVENT</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=2>On February 3, 2006, China Natural Resources, Inc. (&#147;CNRI&#148;), a British Virgin Islands company listed on the Nasdaq Capital Market in the United States, consummated the acquisition of all of the issued and outstanding capital stock of the Company. Under the terms of the agreement governing the acquisition, CNRI issued 9,980,593 of CNRI&#146;s common shares, representing 86.4% of CNRI&#146;s issued and outstanding common shares, as well as warrants to purchase an additional 4,500,000 of CNRI&#146;s common shares.</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>F-18</FONT></P>

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<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2>CHINA NATURAL RESOURCES, INC.<BR>PRO FORMA CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)</FONT></P>


<P><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 3, 2006 (&#147;the Acquisition Date&#148;), China Natural Resources, Inc. (&#147;CNRI&#148;), a British Virgin Islands (&#147;BVI&#148;) Corporation acquired all of the outstanding capital stock of Feishang Mining Holdings Limited (&#147;FMH&#148;). The transaction was structured as a reorganization of FMH with and into CNRI. The acquisition of FMH by CNRI has been accounted for as a reverse acquisition because on a post-merger basis, the former FMH shareholder holds 86.4% of the outstanding common shares of CNRI. As a result, FMH is deemed to be the acquirer for accounting purposes. As consideration for the acquisition, CNRI issued to the former FMH shareholder 9,980,593 restricted common shares and warrants (the &#147;Warrants&#148;) to purchase an additional 4,500,000 common shares. In connection with the acquisition, CNRI converted 320,000 series B preferred shares into 320,000 common shares. The Warrants
entitle the holder to purchase: 2,000,000 common shares of CNRI at an exercise price of $4.00 per share for a period of two years from the Acquisition Date; 1,500,000 common shares at an exercise price of $4.50 per share for a period of three years from the Acquisition Date; and 1,000,000 common shares at an exercise price of $5.00 per share for a period of four years from the Acquisition Date. Other than the exercise price and exercise period, all other terms and conditions of the Warrants are identical.</FONT></P>


<P><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma consolidated statements of operations for the year ended December 31, 2004 and the nine months ended September 30, 2005 are based on the historical financial statements of CNRI and FMH. The acquisition of CNRI has been accounted for using the purchase method of accounting. The pro forma consolidated statements of operations for the year ended December 31, 2004 and the nine months ended September 30, 2005 have been prepared assuming the transaction was completed on January 1, 2004 and January 1, 2005, respectively The pro forma consolidated balance sheet as of September 30, 2005 assumes the transaction was completed on September 30, 2005. The unaudited pro forma financial statement information is presented for informational purposes only. The pro forma balance sheet and statements of operations do not purport to represent what CNRI&#146;s actual financial position or results of operations would have been had the
acquisition of FMH occurred as of such dates, or to project CNRI&#146;s financial position or results of operations for any period or date, nor does it give effect to any matters other than those described in the notes thereto. The unaudited pro forma financial information should be read in conjunction with CNRI&#146;s consolidated financial statements and notes thereto for the year ended December 31, 2004 and the historical financial statements of FMH&#146;s operating subsidiary, Wuhu Feishang Mining Development Company, Ltd. (&#147;WFM&#148;) for the year ended December 31, 2004, the eight months December 31, 2003, the four months ended April 30, 2003 and the year ended December 31, 2002 which are incorporated by reference into this report on Form 6K/A.</FONT></P>


<P><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain assumptions, estimates and adjustments are preliminary and have been made solely for purposes of developing such pro forma information. The pro forma adjustments are based on preliminary estimates and certain assumptions that the Company believes are reasonable under the circumstances. The purchase price allocation is preliminary and subject to change.</FONT></P>


<P><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The functional currency of all the operations of the Company is the Renminbi (&#147;RMB&#148;), the national currency of the PRC. Transactions denominated in currencies other than the RMB are translated into RMBs at the applicable rates of exchange prevailing at the dates of the transactions. Monetary assets and liabilities denominated in other currencies have been translated into RMBs at the rate of exchange at the balance sheet date. The resulting exchange gains or losses are credited or charged to the consolidated statements of operations. The financial statements are stated in RMB. The translation of amounts from RMB into US$ is included solely for the convenience of the reader and has been made at the rate of exchange quoted by the People&#146;s Bank of China on September 30, 2005 of US$1.00 = RMB8.08 (unaudited). No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate
on September 30, 2005 or at any other date.</FONT></P>

<P align=center><FONT size=2>P-1</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2>CHINA NATURAL RESOURCES, INC.<BR>PRO FORMA CONSOLIDATED BALANCE SHEET (UNAUDITED)<BR>SEPTEMBER 30, 2005<BR>(Amounts in thousands, except share and per share data)</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="28%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="8%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="4%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="3%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>China<FONT size=1><BR></FONT><FONT size=1>Natural</FONT><FONT size=1><BR></FONT><FONT size=1>Resources,</FONT><FONT size=1><BR></FONT><FONT size=1>Inc.</FONT></FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1><BR><FONT size=1>Feishang<BR>Mining</FONT><FONT size=1><BR></FONT><FONT size=1>Holdings</FONT><FONT size=1><BR></FONT><FONT size=1>Limited</FONT></FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1><BR><BR><FONT size=1>Pro Forma <BR>Adjustments</FONT></FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Pro Forma</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Pro Forma</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>US$</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>ASSETS</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>CURRENT ASSETS:</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Cash and cash equivalents</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,173</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>47,140</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>49,313</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>6,103</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Trading securities</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>6,709</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>6,709</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>831</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Trade receivables</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>237</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>573</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>810</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>100</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Bills receivable</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>550</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>550</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>68</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Other receivables, deposits and prepayments</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>122</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>646</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>768</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>95</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Amount due from related companies</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>72,243</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>72,243</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>8,941</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Inventories</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,150</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,150</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>637</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>TOTAL CURRENT ASSETS</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>9,241</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>126,302</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>135,543</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>16,775</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INVESTMENTS</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>24,700</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>24,700</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,057</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>GOODWILL</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,600</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>14,026</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>a,b,c</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>15,626</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,934</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>PPROPERTY AND EQUIPMENT, NET</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>944</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>34,684</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>35,628</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,409</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>TOTAL ASSETS</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>36,485</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>160,986</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>211,497</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>26,175</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>CURRENT LIABILITIES:</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Accounts payable</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>38</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>474</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>512</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>63</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Other payables</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,732</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>17,090</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(1042</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>d</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>17,780</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,201</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Advances from suppliers</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>6,686</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>6,686</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>828</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Accrued liabilities</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,055</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,053</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>242</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>c</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,350</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>415</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Current portion of capital lease</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>185</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>185</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>23</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Amount due to related companies</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>25,115</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1042</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>d</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>26,157</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,237</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Amount due to a director</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>23,644</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>23,644</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,926</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Dividend payable</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>44,005</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>44,005</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,446</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Taxes payable</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>10</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,106</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,116</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>633</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>TOTAL CURRENT LIABILITIES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,020</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>124,173</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>127,435</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>15,772</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Capital lease, net of current portion</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>64</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>64</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>8</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>TOTAL LIABILITIES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,084</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>124,173</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>127,499</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>15,780</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>SHAREHOLDERS&#146; EQUITY</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Common shares</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>186,635</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(167,478</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>a,b</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>19,157</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,371</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Reserves</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>28,028</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,912</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>31,940</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,953</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>(Accumulated deficit)/retained earnings</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(181,514</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>32,674</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>181,514</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>a</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>32,674</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,043</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>Accumulated other comprehensive income</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>252</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>227</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(252</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>a</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>227</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>28</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>TOTAL SHAREHOLDERS&#146; EQUITY</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>33,401</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>36,813</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>83,998</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>10,395</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 17.3pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>TOTAL LIABILITIES AND SHAREHOLDERS&#146; EQUITY</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>36,485</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>160,986</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>211,497</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>26,175</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>P-2</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2>CHINA NATURAL RESOURCES, INC.<BR>NOTES TO PRO FORMA CONSOLIDATED BALANCE SHEET (UNAUDITED)</FONT></P>


<P><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following adjustments made to prepare the pro forma consolidated balance sheet as of September 30, 2005, assume that the transaction whereby FMH became a wholly-owned subsidiary of CNRI, in a transaction accounted for under the purchase method of accounting as a reverse acquisition with FMH being the accounting acquirer, occurred on September 30, 2005. The adjustments also reflect the allocation of the estimated fair value of the assets acquired and liabilities assumed. Because the former shareholder of FMH controls the combined entity after the combination transaction, the transaction is accounted for as a reverse transaction such that FMH is considered to have acquired CNRI. Accordingly, the estimated fair value of CNRI was determined by reference to its publicly traded market value immediately prior to the date of the acquisition agreement. The estimated fair value of CNRI was approximately RMB47.1 million (US$5.8
million). The carrying amounts of CNRI&#146;s recorded assets and liabilities approximated their fair values and there were no identifiable intangible assets acquired resulting in goodwill of RMB15.6 million (US$1.9 million). Direct costs incurred by FMH for the acquisition are estimated to be approximately RMB242,000 (US$30,000). </FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="6%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="82%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1>Adjustments</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1>Explanation</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=2>a</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>To eliminate CNRI&#146;s goodwill, equity accounts and accumulated deficit; to eliminate CNRI&#146;s accumulated other comprehensive income; to conform FMH&#146;s equity accounts to CNRI&#146;s capital structure.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=2>b</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>To record the fair value of the goodwill of RMB15.6 million (US$1.9 million).</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=2>c</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>To record an accrual for estimated costs of the acquisition of RMB242,000 (US$30,000).</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=2>d</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>To classify certain CNRI payables due to companies that are affiliated with FMH.</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>P-3</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2>CHINA NATURAL RESOURCES, INC.<BR>PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)<BR>NINE MONTHS ENDED SEPTEMBER 30, 2005<BR>(Amounts in thousands, except share and per share data)</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="32%">
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="8%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="7%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="8%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="6%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="8%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="8%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>China<FONT size=1><BR></FONT><FONT size=1>Natural</FONT><FONT size=1><BR></FONT><FONT size=1>Resources,</FONT><FONT size=1><BR></FONT><FONT size=1>Inc.</FONT></FONT></P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Feishang<BR>Mining<FONT size=1><BR></FONT><FONT size=1>Holding</FONT><FONT size=1><BR></FONT><FONT size=1>Limited</FONT></FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Pro Forma <BR>Adjustments</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Pro Forma</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Pro Forma</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=1>US$</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>NET SALES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>732</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>69,966</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>70,698</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>8,750</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>COST OF SALES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(394</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(23,376</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(23,770</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(2,942</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>GROSS PROFIT</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>338</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>46,590</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>46,928</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>5,808</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>SELLING, GENERAL AND ADMINISTRATIVE EXPENSES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(11,819</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(10,150</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(21,969</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(2,719</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INCOME (LOSS) FROM OPERATIONS</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(11,481</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>36,440</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>24,959</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,089</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INTEREST INCOME</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>685</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>687</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>85</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INTEREST EXPENSE</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(3</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(3</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>OTHER INCOME (EXPENSE), NET</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,937</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(24</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,913</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>237</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INCOME (LOSS) BEFORE INCOME TAXES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(9,545</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>37,101</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>27,556</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,411</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INCOME TAXES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(5,894</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(5,894</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(730</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>NET INCOME (LOSS)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(9,545</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>31,207</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>21,662</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,681</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 3px double" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>WEIGHTED AVERAGE SHARES OUTSTANDING</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>- BASIC</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,247,823</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>10,300,593</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>a</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>11,548,416</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>11,548,416</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>- DILUTED</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,247,823</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>10,484,475</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>a,b</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>11,732,298</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>11,732,298</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>BASIC INCOME (LOSS) PER SHARE</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>- BASIC</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(7.65</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1.88</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>0.23</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>- DILUTED</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(7.65</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1.85</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>0.23</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
</TABLE>



<P><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following adjustments made to the pro forma consolidated statement of operations for the nine months ended September 30, 2005, assume that the transaction whereby FMH became a wholly-owned subsidiary of CNRI, in a transaction accounted for under the purchase method of accounting as a reverse acquisition with FMH being the accounting acquirer, occurred on January 1, 2005.</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="6%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="82%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1>Adjustments</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1>Explanation</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=2>a.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>To record the issuance of 9,980,593 shares of CNRI and the conversion of 320,000 preferred shares into 320,000 common shares</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=2>b.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>To record the weighted average impact of the 4,500,000 warrants issued by CNRI using the treasury stock method</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>P-4</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>


<PAGE>

<P align=center><FONT size=2>CHINA NATURAL RESOURCES, INC.<BR>PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)<BR>YEAR ENDED DECEMBER 31, 2004<BR>(Amounts in thousands, except share and per share data)</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom width="34%">
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="8%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="7%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="8%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="5%">
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="8%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="2%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="8%">

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom width="1%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>China<FONT size=1><BR></FONT><FONT size=1>Natural</FONT><FONT size=1><BR></FONT><FONT size=1>Resources,</FONT><FONT size=1><BR></FONT><FONT size=1>Inc.</FONT></FONT></P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Feishang<BR>Mining<FONT size=1><BR></FONT><FONT size=1>Holding</FONT><FONT size=1><BR></FONT><FONT size=1>Limited</FONT></FONT></P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Pro Forma <BR>Adjustments</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Pro Forma</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>Pro Forma</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>RMB</FONT></P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom colSpan=2>
<P align=center><FONT size=1>US$</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>NET SALES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,970</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>77,939</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>81,909</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>10,137</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>COST OF SALES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(3,381</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(29,667</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(33,048</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(4,090</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>GROSS PROFIT</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>589</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>48,272</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>48,861</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>6,047</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>SELLING, GENERAL AND ADMINISTRATIVE EXPENSES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(26,267</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(6,448</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>4,696</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>&nbsp;&nbsp;a</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(28,019</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(3,468</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INCOME (LOSS) FROM OPERATIONS</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(25,678</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>41,824</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>20,842</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2,579</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INTEREST INCOME</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>20</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>162</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>182</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>23</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INTEREST EXPENSE</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>OTHER INCOME, NET</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,229</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>6</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,235</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>400</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(22,429</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>41,992</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>24,259</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,002</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INCOME TAXES</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(11</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>-</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(11</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(1</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in">&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=bottom>&nbsp; </TD>
<TD vAlign=bottom>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>INCOME (LOSS) FROM CONTINUING OPERATIONS</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(22,440</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>41,992</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>24,248</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>3,001</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>WEIGHTED AVERAGE SHARES OUTSTANDING</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>- BASIC</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,194,118</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>10,300,593</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>&nbsp;&nbsp;&nbsp;b</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>11,494,711</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>11,494,711</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>- DILUTED</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1,194,118</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>11,798,389</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=center><FONT size=2>b,c</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>12,992,507</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>12,992,507</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 8.65pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>BASIC INCOME (LOSS) FROM CONTINUING OPERATIONS PER SHARE</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>- BASIC</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(18.79</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>2.11</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>0.26</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=bottom>
<P style="MARGIN-LEFT: 25.9pt; TEXT-INDENT: -8.65pt; MARGIN-RIGHT: 0in"><FONT size=2>- DILUTED</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>(18.79</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=2>)</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>1.87</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=bottom>
<P align=right><FONT size=2>0.23</FONT></P>
</TD>
<TD vAlign=bottom>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
</TABLE>



<P><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following adjustments made to the pro forma consolidated statement of operations for the year ended December 31, 2004, assume that the transaction whereby FMH became a wholly-owned subsidiary of CNRI, in a transaction accounted for under the purchase method of accounting as a reverse acquisition with FMH being the accounting acquirer, occurred on January 1, 2004.</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR style="FONT-SIZE: 1px">
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="5%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="6%">

<P>&nbsp;</P>
</TD>
<TD vAlign=top width="82%">

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1>Adjustments</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1>Explanation</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR style="FONT-SIZE: 1px">
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD>
<TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
<TD vAlign=top>

<P>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=2>a.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>To reverse a goodwill impairment charge recorded by CNRI. This goodwill does not carryforward to the merged entity.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=2>b.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>To record the issuance of 9,980,593 shares of CNRI and the conversion of 320,000 preferred shares into 320,000 common shares</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=1></FONT>&nbsp;</P>
</TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT size=2>c.</FONT></P>
</TD>
<TD vAlign=top>

<P><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top colSpan=2>

<P><FONT size=2>To record the weighted average impact of the 4,500,000 warrants issued by CNRI using the treasury stock method</FONT></P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2>P-5</FONT></P>

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