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<SEC-DOCUMENT>0001116502-08-000064.txt : 20080111
<SEC-HEADER>0001116502-08-000064.hdr.sgml : 20080111
<ACCEPTANCE-DATETIME>20080111133503
ACCESSION NUMBER:		0001116502-08-000064
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20080110
FILED AS OF DATE:		20080111
DATE AS OF CHANGE:		20080111

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHINA NATURAL RESOURCES INC
		CENTRAL INDEX KEY:			0000793628
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26046
		FILM NUMBER:		08525669

	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
<SEQUENCE>1
<FILENAME>china6k.htm
<DESCRIPTION>REPORT OF FOREIGN PRIVATE ISSUER
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>United States Securities & Exchange Commission EDGAR Filing</TITLE>
<META NAME="keywords" CONTENT="Bassett Press, Inc. 888-805-9953">
<META NAME="date" CONTENT="01/10/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:4px solid #000000" align=right>&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:1.333px solid #000000" align=right>&nbsp;</P>
<P style="line-height:24px; margin:0px; font-size:21.333px" align=center><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px" align=center><B>Washington, D.C. 20549</B></P>
<P style="line-height:16.667px; margin-top:3.533px; margin-bottom:3.533px; font-size:14px" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:24px; margin-top:21.333px; margin-bottom:0px; font-size:21.333px" align=center><B>FORM 6-K</B></P>
<P style="line-height:16.667px; margin-top:3.533px; margin-bottom:3.533px; font-size:14px" align=center><B><SUP>______________</SUP></B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" 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:0px"><BR></P>
<P style="margin:0px" align=center><B>For the month of January&nbsp;2008.</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>Commission File Number 0-26046</B></P>
<P style="line-height:16.667px; margin-top:3.533px; margin-bottom:3.533px; font-size:14px" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:26.667px; margin-top:14.2px; margin-bottom:0px; font-family:Times New Roman Bold; font-size:24px" align=center><FONT FACE="Times New Roman Bold"><B>CHINA NATURAL RESOURCES, INC.</B></FONT></P>
<P style="margin:0px" align=center><FONT FACE="Times New Roman">(Translation of registrant's name into English)</FONT></P>
<P style="line-height:16.667px; margin-top:3.533px; margin-bottom:3.533px; font-size:14px" align=center><B><SUP>______________</SUP></B></P>
<P style="margin-top:8.867px; margin-bottom:0px" align=center><B>Room 2105, West Tower, Shun Tak Centre,</B></P>
<P style="margin:0px" align=center><B><U>200 Connaught Road C., Sheung Wan, Hong Kong</U></B></P>
<P style="margin:0px" align=center>(Address of Principal Executive Office) (Zip Code)</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Indicate by check mark whether the registrant files of will file annual reports under cover of Form&nbsp;20-F or </P>
<P style="margin:0px">Form&nbsp;40-F. &nbsp;Form 20-F <FONT FACE="Wingdings">&#253;</FONT> &nbsp;&nbsp;&nbsp;Form 40-F <FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule&nbsp;101(b)(1): <FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule&nbsp;101(b)(7): <FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">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 <FONT FACE="Wingdings">&#168;</FONT> &nbsp;&nbsp;&nbsp;No <FONT FACE="Wingdings">&#253;</FONT>.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">If &quot;Yes&quot; is marked, indicated below the file number assigned to the registrant in connection with Rule 12b3-2(b): 82-_________.</P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:1.333px solid #000000">&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:4px solid #000000">&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><B><U>Entry into Material Definitive Agreement</U></B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">On December 28, 2007, China Natural Resources, Inc., through its wholly-owned subsidiary, Yunnan Feishang Mining Co., Ltd. (the &#147;Company&#148;) entered into an agreement with Beijing SinoTech Institute of Mineral Exploration Co., Ltd. (&#147;BSTIME&#148;) and Lueyang Longda Stone Casting Co., Ltd. (&#147;LLSC&#148;). &nbsp;BSTIME is a subsidiary of the China Non-ferrous Metals Resources Geological Survey, a PRC government authority. &nbsp;BSTIME and LLSC currently own 70% and 30%, respectively, of Longchuan Metals and Stones Mining Co., Ltd., a corporation organized in the People&#146;s Republic of China (&#147;Longchuan&#148;), and 70% and 30%, respectively, of the exploration right at a mine designated as &#147;Silver and Multi-Metallic Ore&#148; (the &#147;Mine&#148;), located in Jinshizhang District, Longchuan County, Guangdong Province (the &#147;Exploration Right&#148;). &nbsp;The ore is expected to contain silver, lead, zinc, copp
er and other minerals. </P>
<P style="margin-top:8.867px; margin-bottom:6.667px; text-indent:48px">The Agreement defines the relative rights and obligations of the parties and establishes a framework for the management and operation of the mining enterprise contemplated between BSTIME and the Company. &nbsp;Under the Agreement:</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:48px"><FONT FACE="Times New Roman">The Company will acquire an aggregate of 45% of the outstanding equity of Longchuan from BSTIME (15%) and LLSC (30%) for a purchase price of RMB900,000 (US$123,288), subject to completion of required formalities for the equity transfer which are expected to be completed on or before January 28, 2008.</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:48px"><FONT FACE="Times New Roman">Upon full payment of the purchase price by the Company (on or before January 28, 2008), the Company will acquire a 45% interest in the Exploration Right from BSTIME (15%) and LLSC (30%) for a purchase price of RMB37,996,300 (US$5,204,973).</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:48px"><FONT FACE="Times New Roman">The aggregate purchase price for the equity in Longchuan and the Exploration Right to be acquired by the Company is RMB38,896,300 (US$5,328,260), of which, RMB10,000,000 has been paid and RMB28,896,300 is required to be paid on or before January 28, 2008. &nbsp;The purchase price was determined by reference to a valuation prepared by Guangzhou Weineng Mining Right Valuation Office, an unrelated third party.</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:48px"><FONT FACE="Times New Roman">Within 360 days following the entering into the Agreement, BSTIME is required to formally transfer the Exploration Right to Longchuan, at which time the Company will transfer its 45% interest in the Exploration Right to Longchuan.</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:48px"><FONT FACE="Times New Roman">Prior to the transfer of the Exploration Right to Longchuan, BSTIME will remain responsible for the payment of all expenses attributable to the Exploration Right. Following the transfer, all expenses attributable to the Exploration Right and operating expenses shall be borne by Longchuan.</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:48px"><FONT FACE="Times New Roman">The source of funding for the operations of Longchuan shall be mutually determined by the Company and BSTIME.</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:48px"><FONT FACE="Times New Roman">Upon completion of registration of the transfer of the equity in Longchuan with the local Administration for Industry and Commerce, Longchuan will become responsible for mining operations and:</FONT></P>
<P style="margin-top:3.333px; margin-bottom:-16px; padding-left:96px; text-indent:-32px">&#150;</P>
<P style="margin:0px; padding-left:96px">the Board of Directors of Longchuan shall be comprised of five persons, three of whom shall be appointed by BSTIME and two of whom shall be appointed by the Company;</P>
<P style="margin-top:2.2px; margin-bottom:-16px; padding-left:96px; text-indent:-32px">&#150;</P>
<P style="margin:0px; padding-left:96px">the Company shall appoint one supervisor for Longchuan;</P>
<P style="margin-top:2.2px; margin-bottom:-16px; padding-left:96px; text-indent:-32px">&#150;</P>
<P style="margin:0px; padding-left:96px">the operation and management team of Longchuan shall be comprised of a general manager, to be designated by BSTIME, and a deputy general manager, to be designated by the Company; and</P>
<P style="margin-top:2.2px; margin-bottom:-16px; padding-left:96px; text-indent:-32px">&#150;</P>
<P style="margin:0px; padding-left:96px">the Company shall appoint a Chief Financial Officer for Longchuan.</P>
<P style="margin-top:6.667px; margin-bottom:-16px; padding-left:64px; text-indent:-32px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:64px"><FONT FACE="Times New Roman">The parties are liable for the payment of penalties for failing to act within the time required by the Agreement.</FONT></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:49.867px">It is anticipated that Longchuan will engage in the exploration and mining of non-ferrous metal at the Mine in Jinshizhang District, Guangdong Province, in the PRC. &nbsp;The Exploration Right covers an area of approximately 52.67 square kilometers, of which approximately 1.45 square kilometers has undergone detailed exploration, and the balance has undergone preliminary exploration. &nbsp;The valuation relating to the purchase price paid by the Company was performed separately for the detailed and preliminary portions of the exploration area. &nbsp;However, neither the valuation report nor the limited exploration that has been conducted constitutes a feasibility study and no conclusions should be drawn as to the extent of minerals contained in the exploration area. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; text-indent:48px; page-break-before:always">The Exploration Right covers the right to explore the exploration area and assess its economic value. &nbsp;However, a mining license is required prior to the commencement of actual mining operations. &nbsp;&nbsp;It is anticipated that the transfer of the Exploration Right to Longchuan will take approximately three to six months. &nbsp;Longchuan has applied for the mining right for the 1.45 square kilometer detailed exploration area of the Mine. &nbsp;It is anticipated that mining operations will commence in the fourth quarter of 2008, and that the results of mining operations will contribute to revenues during 2009. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Prior to commencement of operations, Longchuan will also have to arrange for the construction of a mine, engage employees and contractors to perform mineral extraction and other aspects of mining operations and arrange financing for these and other aspects of its operations. &nbsp;In addition, Longchuan will be subject to all of the risks inherent in the establishment of a new mining venture, as detailed by the Company from time-to-time in the reports it files with the Securities and Exchange Commission.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">We expect to account for our investment in Longchuan using the equity method of accounting.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">A copy of the press release disseminated by the Company to disclose its acquisition described elsewhere in this report is furnished as Exhibit 99.1 hereto.</P>
<P style="margin-top:8.867px; margin-bottom:0px"><B><U>Change in Officers</U></B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">On January 2, 2008, the Board of Directors of China Natural Resources, Inc. held its 2008 Annual Meeting and, in furtherance of recommendations of the Nominating and Corporate Governance Committee, (a) reelected Li Feilie as the Company&#146;s President and Chief Executive Officer, (b) elected Tam Cheuk Ho as the Company&#146;s Executive Vice President and (c) elected Wong Wah On Edward as the Company&#146;s Chief Financial Officer. Prior to the elections, Mr. Tam and Mr. Wong had served as the Company&#146;s Chief Financial Officer and Financial Controller, respectively, since November 2004. Mr. Wong will continue to serve as the Company&#146;s Corporate Secretary. The Company&#146;s existing employment agreements with Messrs. Tam and Wong will continue in effect and, other than their new titles and corresponding changes in their duties will be unchanged by reason of the elections. &nbsp;</P>
<P style="margin-top:8.867px; margin-bottom:0px"><B><U>Other Matters</U></B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">For convenience of the reader, RMB have been converted into US$ based upon the exchange rate of US$1.00 = RMB7.30, as quoted by the People&#146;s Bank of China on December 31, 2007. There is no assurance that RMB can actually be converted into US$ at this or any other rate.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">This report includes forward-looking statements within the meaning of federal securities laws. These forward-looking statements are based upon assumptions believed to be reliable, but involve risks and uncertainties that may cause actual results of operations to differ materially from the forward-looking statements. Among the risks and uncertainties that could cause our actual results to differ from our forward-looking statements are our intent, belief and current expectations as to business operations and operating results of the Company, uncertainties regarding the governmental, economic and political circumstances in the People&#146;s Republic of China, risks and hazards associated with the Company&#146;s mining activities, uncertainties associated with ore reserve estimates, uncertainties associated with metal price volatility, uncertainties associated with the Company&#146;s reliance on third-party contractors and other risks detailed fr
om time to time in the Company&#146;s Securities and Exchange Commission filings. Although the Company&#146;s management believes that the expectations reflected in forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to be accurate.</P>
<P style="margin-top:8.867px; margin-bottom:0px"><B><U>Exhibits</U></B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=57.2></TD><TD width=18.333></TD><TD width=548.467></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=57.2><P style="margin:0px" align=center><B>Exhibit Number</B></P>
</TD><TD valign=top width=18.333><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=548.467><P style="margin:0px"><B>Description</B></P>
</TD></TR>
<TR><TD valign=bottom width=57.2><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=18.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=548.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=57.2><P style="margin:0px; color:#0000FF" align=center><A HREF="exhibit101.htm"><FONT COLOR=#0000FF><U>10.1</U></FONT></A><FONT COLOR=#000000></FONT></P>
</TD><TD valign=top width=18.333><P style="margin:0px"><FONT COLOR=#000000>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
</TD><TD valign=bottom width=548.467><P style="margin:0px">Agreement dated December 28, 2007, by and among Beijing SinoTech Institute of Mineral Exploration Co., Ltd., Lueyang Longda Stone Casting Co., Ltd. and Yunnan Feishang Mining Co., Ltd. (English translation of original Chinese version)</P>
</TD></TR>
<TR><TD valign=top width=57.2><P style="margin:0px; color:#0000FF" align=center><A HREF="exhibit991.htm"><FONT COLOR=#0000FF><U>99.1</U></FONT></A><FONT COLOR=#000000></FONT></P>
</TD><TD valign=top width=18.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=548.467><P style="margin:0px"><FONT COLOR=#000000>Press Release dated January 11, 2008</FONT></P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>SIGNATURES</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">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, thereunto duly authorized.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=364.2></TD><TD width=29.933></TD><TD width=229.867></TD></TR>
<TR><TD valign=bottom width=364.2><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=259.8 colspan=2><P style="margin:0px"><B>CHINA NATURAL RESOURCES, INC.</B></P>
</TD></TR>
<TR><TD valign=bottom width=364.2><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=259.8 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=364.2><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=29.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=229.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=364.2><P style="margin:0px">Date: January 11, 2008</P>
</TD><TD valign=bottom width=29.933><P style="margin:0px" align=right>By:&nbsp;&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=229.867><P style="line-height:normal; margin:0px">/s/&nbsp;&nbsp;L<SMALL>I<BIG> F<SMALL>EILIE</SMALL></P>
</TD></TR>
<TR><TD valign=bottom width=364.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=29.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=229.867><P style="margin:0px">Li Feilie</P>
</TD></TR>
<TR><TD valign=bottom width=364.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=29.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=229.867><P style="margin:0px">President and Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>EXHIBITS</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=57.2></TD><TD width=18.333></TD><TD width=548.467></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=57.2><P style="margin:0px" align=center><B>Exhibit Number</B></P>
</TD><TD valign=top width=18.333><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=548.467><P style="margin:0px"><B>Description</B></P>
</TD></TR>
<TR><TD valign=bottom width=57.2><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=18.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=548.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=57.2><P style="margin:0px; color:#0000FF" align=center><A HREF="exhibit101.htm"><FONT COLOR=#0000FF><U>10.1</U></FONT></A><FONT COLOR=#000000></FONT></P>
</TD><TD valign=top width=18.333><P style="margin:0px"><FONT COLOR=#000000>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
</TD><TD valign=bottom width=548.467><P style="margin:0px">Agreement dated December 28, 2007, by and among Beijing SinoTech Institute of Mineral Exploration Co., Ltd., Lueyang Longda Stone Casting Co., Ltd. and Yunnan Feishang Mining Co., Ltd. (English translation of original Chinese version)</P>
</TD></TR>
<TR><TD valign=top width=57.2><P style="margin:0px; color:#0000FF" align=center><A HREF="exhibit991.htm"><FONT COLOR=#0000FF><U>99.1</U></FONT></A><FONT COLOR=#000000></FONT></P>
</TD><TD valign=top width=18.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=548.467><P style="margin:0px"><FONT COLOR=#000000>Press Release dated January 11, 2008</FONT></P>
</TD></TR>
</TABLE>
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exhibit101.htm
<DESCRIPTION>AGREEMENT
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<META NAME="date" CONTENT="01/10/2008">
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<P style="line-height:26.667px; margin:0px; font-size:24px" align=center>Agreement</P>
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<P style="line-height:26.667px; margin:0px; font-size:24px" align=center>Among</P>
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<P style="line-height:26.667px; margin:0px; font-size:24px" align=center>Beijing SinoTech Institute of Mineral Exploration Co., Ltd.,</P>
<P style="line-height:26.667px; margin:0px; font-size:24px" align=center>Lueyang Longda Stone Casting Co., Ltd.</P>
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<P style="line-height:26.667px; margin:0px; font-size:24px" align=center>And</P>
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<P style="line-height:26.667px; margin:0px; font-size:24px" align=center>Yunnan Feishang Mining Co., Ltd.</P>
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<P style="line-height:26.667px; margin:0px; font-size:24px" align=center>Concerning</P>
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<P style="line-height:26.667px; margin:0px; font-size:24px" align=center>Transfer of</P>
<P style="line-height:26.667px; margin:0px; font-size:24px" align=center>&nbsp;Equity of Longchuan Metals and Stones Mining Co., Ltd.</P>
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<P style="line-height:26.667px; margin:0px; font-size:24px" align=center>And</P>
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<P style="line-height:26.667px; margin:0px; font-size:24px" align=center>Exploration Right of Silver and Multi-Metallic Ore in Jinshizhang District</P>
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<P style="line-height:18.667px; margin:0px; font-size:16px" align=center><B>28 December 2007</B></P>
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<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>1. Longchuan Metals and Stones Mining Co., Ltd. (&#147;LMSM&#148;) is a company with limited liability, which has RMB2,000,000 registered capital and the legal representative of which is Huanghao. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>2. LMSM has two shareholders, of which Beijing SinoTech Institute of Mineral Exploration Co., Ltd. contributes RMB1,400,000, accounting for 70% of the registered capital, and Lueyang Longda Stone Casting Co., Ltd. contributed RMB600,000, accounting for 30% of the registered capital. </P>
<P style="line-height:30.667px; margin-top:11.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>3. Beijing SinoTech Institute of Mineral Exploration Co., Ltd. holds the exploration right of Silver and Multi-Metallic Ore, Jinshizhang District, Longchuan County, Guangdong Province (Exploration Right License No. 0100000720203; area: 52.67 km<SUP>2</SUP>; owner of exploration right: Beijing SinoTech Institute of Mineral Exploration Co., Ltd.; hereinafter referred to as &#147;Exploration Right of Silver and Multi-Metallic Ore in Jinshizhang District&#148; or &#147;Exploration Right&#148;). Beijing SinoTech Institute of Mineral Exploration Co., Ltd. clearly announces that 30% of the Exploration Right belongs to Lueyang Longda Stone Casting Co., Ltd. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>4. Yunnan Feishang Mining Co., Ltd. is a company engaged in long-term investment in nonferrous metals resources and energy resources. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>5. Beijing SinoTech Institute of Mineral Exploration Co., Ltd. and Lueyang Longda Stone Casting Co., Ltd. plan to transfer their 45% equity in LMSM and 45% of Exploration Right of Silver and Multi-Metallic Ore in Jinshizhang District to Yunnan Feishang Mining Co., Ltd., and Yunnan Feishang Mining Co., Ltd. agrees to accept transfer of the said equity and right. </P>
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<P style="line-height:30.667px; margin:0px; text-indent:37.333px; font-size:18.667px; page-break-before:always" align=justify>Therefore, pursuant to <I>Contract Law of the People&#146;s Republic of China</I>, <I>Company Law of the People&#146;s Republic of China</I>, and other laws and regulations,<I> </I>Beijing SinoTech Institute of Mineral Exploration Co., Ltd., Lueyang Longda Stone Casting Co., Ltd. and Yunnan Feishang Mining Co., Ltd. enter into this Agreement on transfer by Beijing SinoTech Institute of Mineral Exploration Co., Ltd. and Lueyang Longda Stone Casting Co., Ltd. of their 45% equity in LMSM and 45% Exploration Right of Silver and Multi-Metallic Ore in Jinshizhang District to Yunnan Feishang Mining Co., Ltd. </P>
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<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px" align=justify><B>Article 1</B></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Parties to the Agreement</B></P>
<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px" align=justify>1.1</P>
<P style="line-height:30.667px; margin:0px; text-indent:48px; font-size:18.667px" align=justify><B>Beijing SinoTech Institute of Mineral Exploration Co., Ltd. </B>(&#147;Party A&#148;)</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Legal representative: Wang Jingbin</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Coordinator: Fu Shuixing</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Address: Courtyard 5, Anwaibei Garden, Chaoyang District, Beijing City</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Postcode: 100012</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Tel: 010-84921995</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Fax: 010-84927639</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Bank: Beijing Beichen Road Sub-branch of Industrial and Commercial Bank of China</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">A/C number: 0200041809024595460</P>
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<P style="line-height:33.333px; margin-top:0px; margin-bottom:-33.333px; padding-left:48px; text-indent:-48px; font-size:18.667px" align=justify>1.2</P>
<P style="line-height:30.667px; margin:0px; padding-left:48px; font-size:18.667px" align=justify><B>Lueyang Longda Stone Casting Co., Ltd.</B> (&#147;Party B&#148;)</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Legal representative: Jiang Jiajing</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Coordinator: Bai Xiaojun</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Address: Lueyang Longda Stone Casting Co., Ltd., Shaanxi Province</P>
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<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">1</FONT></P>
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<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px; page-break-before:always"><FONT FACE="Times New Roman">Postcode: 724300</FONT></P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Tel: 0916-4834629; 13809169956</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Fax: 0916-4822420</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Bank: Hanzhong City Beituanjie Street Sub-branch, ICBC, </P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">A/C No.: 2606050319200036828</P>
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<P style="line-height:26.667px; margin-top:9.333px; margin-bottom:-26.667px; font-size:18.667px" align=justify>1.3</P>
<P style="line-height:24px; margin:0px; text-indent:48px; font-size:18.667px" align=justify>Yunnan Feishang Mining Co., Ltd. (&#147;Party C&#148;)</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Legal representative: Jia Zhigang</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Address: 205, 14/F, Meiya Building, Renmin Road Central, Kunming City</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Coordinator: Li Haitao</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Postcode: 650051</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Tel: 0755-82991306</P>
<P style="line-height:29.333px; margin:0px; padding-left:48px; font-size:18.667px">Fax: 0755-82991769</P>
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<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px" align=justify><B>Article 2</B></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Object of Transfer</B></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>2.1 Party A agrees to transfer its 15% equity in LMSM and 15% Exploration Right of Silver and Multi-Metallic Ore in Jinshizhang District to Party C pursuant to the Agreement, and Party C agrees to accept the transfer of the said equity and right. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>2.2 Party B agrees to transfer its 30% equity in LMSM and 30% Exploration Right of Silver and Multi-Metallic Metallic Ore in Jinshizhang District to Party C pursuant to the Agreement, and Party C agrees to accept the transfer of the said equity and right. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>2.3 Once this Agreement becomes effective, Party C shall enjoy and fulfill the rights and obligations as shareholder in proportion to the transferred equity and exploration right pursuant to <I>Company Law</I> and the Articles of Association of LMSM. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">2</FONT></P>
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<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px; page-break-before:always" align=justify><FONT FACE="Times New Roman"><B>Article 3</B></FONT></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Transfer Price and Terms of Payment</B></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>3.1 Pricing principle for transfer price</P>
<P style="line-height:30.667px; margin-top:11.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>Whereas both Party A and Party B agree to transfer Exploration Right of Silver and Multi-Metallic Ore in Jinshizhang District to LMSM, therefore the three parties agree to calculate the transfer price under the Agreement based on the net assets of LMSM and the value of the said exploration right. Specifically:</P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>3.1.1 Value of the exploration right</P>
<P style="line-height:30.667px; margin-top:11.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>Party A has entrusted Guangzhou Weineng Mining Right Valuation Office to valuate the exploration right under the Agreement, which exploration right covers General Exploration (Detailed Exploration Area) of Silver and Multi-Metallic Metallic Ore, Jinshizhang District, Guangdong Province, and General Exploration (Preliminary Exploration Area) of Silver and Multi-Metallic Ore, Longchuan County, Jinshizhang District, Guangdong Province. Following is the valuation result: </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>The &#147;General Exploration Right (Detailed Exploration Area) of Silver and Multi-Metallic Ore, Jinshizhang District, Guangdong Province&#148; is valuated at RMB78,729,900 (Renminbi seventy-eight million seven hundred and twenty-nine thousand nine hundred), and the &#147;General Exploration Right (Preliminary Exploration Area) of Silver and Multi-Metallic Ore, Jinshizhang District, Longchuan County, Guangdong Province&#148; is valuated at RMB5,706,400 (Renminbi five million seven hundred and six thousand four hundred). Altogether, the General Exploration Right (Detailed Exploration Area) of Silver and Multi-Metallic Ore, Jinshizhang District, Guangdong Province and the General Exploration Right (Preliminary Exploration Area) of Silver and Multi-Metallic Ore, Jinshizhang District, Longchuan County, </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">3</FONT></P>
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<P style="line-height:30.667px; margin-top:11.333px; margin-bottom:0px; font-size:18.667px; page-break-before:always" align=justify><FONT FACE="Times New Roman">Guangdong Province are valuated at RMB84,436,300 (Renminbi eighty-four million four hundred and thirty-six thousand three hundred). </FONT></P>
<P style="line-height:30.667px; margin-top:11.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>The three parties agree that the price of 100% exploration right under the Agreement is Renminbi eighty-four million four hundred and thirty-six thousand three hundred. The three parties confirm that LMSM shall apply for the mining right of Silver and Multi-Metallic Ore, Jinshizhang District, Longchuan County, Guangdong Province, which has been taken into account in the pricing of the exploration right. The expenses relating to the mining right shall be borne as specified in Clause 6.2 of the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>3.1.2 Value of the equity (excluding the value of the exploration right)</P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>The three parties agree that the book value of net assets corresponding to 100% equity of LMSM is RMB1,883,500. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>3.2 Transfer price</P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>The three parties agree that the consideration to be paid by Party C for the 45% equity of LMSM is RMB900,000 and the consideration for the 45% exploration right is RMB37,996,300, totaling RMB38,896,300. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>3.3 Terms of payment</P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>3.3.1 Party C agrees to pay RMB10,000,000 (including RMB1,000,000 earnest money already paid to Party A) to the account designated by Party A within 7 workdays (not later than 30 December 2007 by T/T) after the Agreement becomes effective. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>3.3.2 Party C shall pay RMB28,896,300 to the accounts designated by Party A and Party B respectively within 20 workdays after the Agreement becomes effective and upon receipt of the written notices of payment issued by Party A and Party B. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">4</FONT></P>
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<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px; page-break-before:always" align=justify><FONT FACE="Times New Roman"><B>Article 4</B></FONT></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Transfer procedure</B></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>4.1 Party C pays RMB10,000,000 (including RMB1 million earnest money already paid) to the account designated by Party A within 7 workdays (not later than 30 December 2007 by T/T) after entering into the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>4.2 Party C pays RMB28,896,300 to the accounts designated by Party A and Party B respectively within 20 workdays after entering into the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>4.3 Party A and Party B completes formalities with the industrial and commercial authority for the transfer of the equity under the Agreement within 30 days after entering into the Agreement, so that Party C holds 45% equity of LMSM. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>4.4 Party A transfers its exploration right of Silver and Multi-Metallic Ore in Jinshizhang District to LMSM within 360 days after entering into the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px" align=justify><B>Article 5</B></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Handling of assets and liabilities</B></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>5.1 Party A and Party B undertake that the net assets of LMSM as at 31 December 2007 will be RMB1,883,500, otherwise Party A and Party B shall supplement to that amount when Party C takes over the equity. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>5.2 Party A and Party B undertake that the liabilities (including contingent liabilities) of LMSM will not increase after conclusion of the Agreement, otherwise any increased liabilities shall be borne by Party A and Party B.</P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
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<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">5</FONT></P>
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<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px; page-break-before:always" align=justify><FONT FACE="Times New Roman">5.3 If, after entering into the Agreement, Party C finds any debts or other payables of LMSM not disclosed in the Agreement (&#147;Undisclosed Debts&#148;, including contingent liabilities), Party C has the right to require Party A to make payment with due bank interest to LMSM or Party C within the specified period. </FONT></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px" align=justify><B>Article 6</B></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Operations and management of LMSM</B></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>6.1 Upon completion of registration of the transfer with the industrial and commercial authority, LMSM shall be responsible for operations of Silver and Multi-Metallic Ore, Jinshizhang District, Longchuan County as specified in the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>6.2 Before the Exploration Right of Silver and Multi-Metallic Ore in Jinshizhang District is transferred to LMSM, all the expenses relating to the exploration right (including but not limited to the expenses for exploration and maintenance of the exploration right) shall be borne by Party A; after the said exploration right is transferred to LMSM, the expenses relating to the exploration right and the fee of the mining right, application fee and company operating cost shall be borne by LMSM. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>6.3 Upon completion of registration of the transfer of equity with the industrial and commercial authority, the fund needed by LMSM for subsequent exploration and development shall, with consent of Party A and Party C, be solved by such means as capital increase, introduction of strategic investors, equity financing, and loans from shareholders. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>6.4 Upon completion of registration of the transfer of equity with the industrial and commercial authority, the general meeting of LMSM shall comprise Party A and Party C, it shall be the supreme authority of LMSM, and </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">6</FONT></P>
<P style="margin:0px"><BR></P>
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<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; font-size:18.667px; page-break-before:always" align=justify><FONT FACE="Times New Roman">shall exercise functions and powers pursuant to </FONT><I>Company Law of the People&#146;s Republic of China</I> and the Articles of Association. </P>
<P style="line-height:30.667px; margin-top:11.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>6.5 Upon completion of registration of the transfer of equity with the industrial and commercial authority, the Board of Directors of LMSM shall comprise 5 directors, including 3 appointed by Party A and 2 appointed by Party C; the chairman shall be elected by the Board. A director shall serve a term of three years and may serve consecutive terms as granted by the respective appointer. </P>
<P style="line-height:30.667px; margin-top:11.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>6.6 Upon completion of registration of the transfer of equity with the industrial and commercial authority, LMSM shall set one supervisor, to be appointed by Party C. The supervisor shall serve a term of three years and may serve consecutive terms as granted by the appointer. </P>
<P style="line-height:30.667px; margin-top:11.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>6.7 Upon completion of registration of the transfer of equity with the industrial and commercial authority, the operation and management team of LMSM, which shall be responsible for the daily operations management of LMSM, shall consist of one general manager, to be appointed by Party A; and one deputy general manager, to be appointed by Party C. The general manager and deputy general manager shall be engaged by the Board and shall serve 3 years. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>6.8 Upon completion of registration of the transfer of equity with the industrial and commercial authority, the chief financial officer of LMSM shall be appointed by Party C and engaged by the Board. </P>
<A NAME="_Toc168827409"></A><P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>6.9 Upon completion of registration of the transfer of equity with the industrial and commercial authority, other rules of LMSM shall be specified in the Articles of Association of LMSM. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">7</FONT></P>
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<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px; page-break-before:always" align=justify><FONT FACE="Times New Roman"><B>Article 7</B></FONT></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Special agreements</B></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>7.1 If Party A fails to transfer the exploration right under the Agreement to LMSM within 360 days after entering into the Agreement , Party A shall buy back 45% equity held by Party C in LMSM at the price of RMB900,000 within 10 days after expiry of the said period, and Party A and Party C shall contribute their respective interests in the exploration right to establish a new company within 30 days; Party A shall undertake to transfer the exploration right to the new company, and Party C&#146;s shareholding and contribution percentage in the new company, the share of the exploration right and consideration shall remain unchanged. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>7.2 Regardless how the exploration right is transferred to LMSM, Party A shall have the obligation to ensure that Party C&#146;s shareholding percentage and consideration, the share of the exploration right and consideration shall remain unchanged. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>7.3 Party A shall bear unlimited joint liability for all the obligations of Party B under the Agreement in relation to Party C. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px" align=justify><B>Article 8</B></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Statements and Undertakings</B></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.1 The three parties make the following statements and undertakings concerning their respective qualifications as principals: </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.1.1 The respective parties are legal persons with full capacity for civil conduct. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.1.2 The respective parties have obtained or undertake to obtain all the authorizations and/or approvals for concluding the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.1.3 On the date of conclusion of the Agreement, there is no claim, </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">8</FONT></P>
<P style="margin:0px"><BR></P>
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<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; font-size:18.667px; page-break-before:always" align=justify><FONT FACE="Times New Roman">complaint, legal proceeding or government investigation making the respective parties unable to fulfill obligations under the Agreement, against the respective parties, lodged in the court or government agency, or ongoing or about to take place. </FONT></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.1.4 The conclusion or performance of the Agreement will not make any party breach the contract or agreement concluded with another person or its undertakings made unilaterally by the said party. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.1.5 The respective parties will take all measures necessary to help complete all the formalities in relation to transfer of the equity under the Agreement to Party C. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.2 Party A and Party B hereby make the following statements and undertakings to Party C that they: </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.2.1 lawfully and fully own the equity and exploration right under the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.2.2 will not set any mortgage or pledge with the said equity and exploration right before or after conclusion of the Agreement, are not restricted by any pledge, right of seizure, lien, right of first refusal, creditor&#146;s rights, or claim for compensation, and do not have any third party&#146;s interests. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.3 Party C hereby makes the following statements and undertakings to Party A and B that it: </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.3.1 has lawful funds for taking over the equity and has enough capitals to fulfill its obligations under the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>8.3.2 will undertake the obligations as shareholder of LMSM in proportion to its shareholding percentage as from the date of transfer of the equity under the Agreement to Party C. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">9</FONT></P>
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<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px; page-break-before:always" align=justify><FONT FACE="Times New Roman">8.4 Party A, Party B and Party C hereby undertake to sign relevant documents such as equity transfer agreement, general meeting resolution and amended Articles of Association of LMSM within the specified period after entering into the Agreement . </FONT></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px" align=justify><B>Article 9</B></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Amendment, cancellation and termination of the Agreement</B></P>
<P style="line-height:30.667px; margin-top:11.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>9.1 Any amendment to the Agreement shall be executed in a supplementary written agreement signed by the three parties (two parties after change of equity). The supplementary agreement shall have the same legal force as the Agreement. </P>
<A NAME="_Toc168827410"></A><P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>9.2 If any amendment to the Agreement involves any registered item of LMSM, the Articles of Association shall be amended accordingly. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px" align=justify><B>Article 10</B></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Liabilities for breach of the Agreement</B></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>10.1 Any act against the undertakings or the Agreement shall constitute a breach of the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>10.2 If Party C fails to fully pay the transfer price pursuant to Clause 4.1 and Clause 4.2 of the Agreement, Party C shall pay Party A a forfeit equal to 0.05% of the overdue amount for each day of delay. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>10.3 If Party A and Party B fail to complete the equity transfer formalities with the industrial and commercial authority pursuant to Clause 4.3 of the Agreement, Party A shall pay Party C RMB100,000 forfeit and shall continue to perform the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>10.4 If Party A fails to complete the exploration right transfer formalities pursuant to Clause 4.4 of the Agreement, Party A shall pay Party C </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">10</FONT></P>
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<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; font-size:18.667px; page-break-before:always" align=justify><FONT FACE="Times New Roman">RMB5,000,000 forfeit and shall continue to perform the Agreement. </FONT></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>10.5 Where the case may be, if Party A fails to establish a new company with Party C within the specified period pursuant to Clause 7.1 or fails to transfer the exploration right to the new company within 180 days after establishment of the new company, Party A shall pay Party C RMB5,000,000 forfeit and shall continue to perform the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>10.6 If, after conclusion of the Agreement, Party A and Party B dispose of the equity and/or exploration right under the Agreement without the written consent of Party C or enter into any form of cooperation with a third party with the said equity and/or exploration right, Party A shall pay Party C RMB5,000,000 forfeit and shall continue to perform the Agreement. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<A NAME="_Toc168827411"></A><P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px" align=justify><B>Article 11</B></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Force majeure</B></P>
<P style="line-height:30.667px; margin-top:11.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>If any earthquake, typhoon, flood, fire, war or any unforeseeable or unavoidable force majeure has any direct impact on the performance of the Agreement or makes it impossible to perform the Agreement as per the specified terms and conditions, the affected party shall promptly inform the other parties, shall provide details about the force majeure within 15 days, and valid documents justifying non-performance or delayed performance of the Agreement in whole or in part. Depending on the extent to which the performance of the Agreement is affected, the parties to the Agreement may negotiate cancellation of the Agreement or partial exemption from fulfillment of the duties under the Agreement or delayed performance of the Agreement.</P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
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<A NAME="_Toc168827412"></A><P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">11</FONT></P>
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<P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px; page-break-before:always" align=justify><FONT FACE="Times New Roman"><B>Article 12</B></FONT></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Governing Laws</B></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>The conclusion, effect, interpretation and performance of the Agreement and settlement of disputes shall be governed by the laws of the People&#146;s Republic of China. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<A NAME="_Toc168827413"></A><P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px" align=justify><B>Article 13</B></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>Settlement of Disputes</B></P>
<P style="line-height:30.667px; margin-top:11.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>Any dispute arising from performance of the Agreement or relating to the Agreement shall preferably be settled through friendly negotiation; if negotiation fails, any party has the right to refer the dispute to the People&#146;s Court with jurisdiction in the location of registration of LMSM. &nbsp;</P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px" align=justify><BR></P>
<A NAME="_Toc168827414"></A><P style="line-height:33.333px; margin-top:9.333px; margin-bottom:-33.333px; font-size:18.667px" align=justify><B>Article 14</B></P>
<P style="line-height:30.667px; margin:0px; text-indent:96px; font-size:18.667px" align=justify><B>The Agreement comes into effect and others</B></P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>14.1 The Agreement shall take effect upon affixing of signatures of authorized representatives and corporate seals of Party A, Party B and Party C thereto. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>14.2 The Agreement shall be executed in six originals without any duplicate, with equal legal force, with two held by each party. </P>
<P style="line-height:30.667px; margin-top:9.333px; margin-bottom:0px; text-indent:37.333px; font-size:18.667px" align=justify>14.3 The Agreement is signed by Party A, Party B and Party C in Beijing, on 28 December 2007. </P>
<P style="line-height:29.333px; margin:0px"><BR></P>
<P style="line-height:29.333px; margin:0px" align=center><BR></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px" align=center>(Following is the signing page without any text)</P>
<P style="line-height:29.333px; margin:0px"><BR></P>
<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">12</FONT></P>
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<P style="line-height:29.333px; margin:0px; font-size:18.667px; page-break-before:always"><FONT FACE="Times New Roman">(This is the signing page without any text)</FONT></P>
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<P style="line-height:29.333px; margin:0px"><BR></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px"><B>Party A: Beijing SinoTech Institute of Mineral Exploration Co., Ltd. </B></P>
<P style="line-height:29.333px; margin:0px"><BR></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px">Signature of representative:</P>
<P style="line-height:29.333px; margin:0px"><BR></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px"><U>/s/ Wang Jingbin</U></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px">Wang Jingbin</P>
<P style="line-height:29.333px; margin:0px"><BR></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px"><B>Party B: Lueyang Longda Stone Casting Co., Ltd.</B></P>
<P style="line-height:29.333px; margin:0px"><BR></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px">Signature of representative:</P>
<P style="line-height:29.333px; margin:0px"><BR></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px"><U>/s/ Jiang Jiajing</U></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px">Jiang Jiajing</P>
<P style="line-height:29.333px; margin:0px"><BR></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px"><B>Party C: Yunnan Feishang Mining Co., Ltd.</B></P>
<P style="line-height:29.333px; margin:0px"><BR></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px">Signature of representative:</P>
<P style="line-height:29.333px; margin:0px"><BR></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px"><U>/s/ Jia Zhigang</U></P>
<P style="line-height:29.333px; margin:0px; font-size:18.667px"><U>Jia Zhigang</U></P>
<P style="margin:0px"><BR></P>
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<P style="line-height:14.667px; margin:0px; text-indent:228px; font-family:SimSun; font-size:12px" align=right><FONT FACE="SimSun">13</FONT></P>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>exhibit991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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<TITLE>United States Securities & Exchange Commission EDGAR Filing</TITLE>
<META NAME="keywords" CONTENT="Bassett Press, Inc. 888-805-9953">
<META NAME="date" CONTENT="01/10/2008">
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<P style="line-height:17.333px; margin:0px; font-family:Arial; font-size:14.667px" align=right><FONT FACE="Arial"><B>EXHIBIT 99.1</B></FONT></P>
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<P style="line-height:17.333px; margin:0px; font-family:Arial; font-size:14.667px"><U>CONTACT</U></P>
<P style="line-height:17.333px; margin:0px; font-family:Arial; font-size:14.667px" align=justify>Edward Wong, Chief Financial Officer</P>
<P style="line-height:17.333px; margin:0px; font-family:Arial; font-size:14.667px" align=justify>011-852-2810-7205 or fc@chrb.com</P>
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<P style="line-height:17.333px; margin:0px; font-family:Arial; font-size:14.667px"><B><U>FOR IMMEDIATE RELEASE</U></B></P>
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<P style="line-height:17.333px; margin:0px; font-family:Arial; font-size:14.667px" align=center><B>CHINA NATURAL RESOURCES ACQUIRES 45% INTEREST IN</B></P>
<P style="line-height:17.333px; margin:0px; font-family:Arial; font-size:14.667px" align=center><B>PRC MINING ENTERPRISE</B></P>
<P style="line-height:17.333px; margin-top:9.8px; margin-bottom:0px; font-family:Arial; font-size:14.667px">HONG KONG, January 11, 2008 &#150; CHINA NATURAL RESOURCES, INC. (NASDAQ: CHNR), a company based in the People&#146;s Republic of China, today announced that it had entered into an agreement to acquire a 45% interest in (a) Longchuan Metals and Stones Mining Co., Ltd., a company formed in the People&#146;s Republic of China (&#147;PRC&#148;) and (b) mineral exploration rights covering approximately 52.67 square kilometers located in Guangdong Province, PRC. &nbsp;The purchase price for the Company&#146;s 45% interest in Longchuan and the mineral rights is RMB38,896,300 (US$5,328,260). &nbsp;Other details of the transaction are contained in the Company&#146;s current report filed with the Securities and Exchange Commission on January 11, 2008.</P>
<P style="line-height:17.333px; margin-top:9.8px; margin-bottom:0px; font-family:Arial; font-size:14.667px">Commencement of mining operations is subject to various conditions including transfer to the Company of its interest in Longchuan and the grant of mining rights to Longchuan. &nbsp;Following completion of regulatory requirements and Longchuan securing the necessary mining rights, Longchuan intends to engage in the exploration and mining of non-ferrous metals (including silver, lead, zinc and copper) in the area covered by the mining rights. &nbsp;It is anticipated that mining operations will commence in the fourth quarter of 2008, and that the results of mining operations will contribute to revenues during 2009.</P>
<P style="line-height:17.333px; margin-top:9.8px; margin-bottom:0px; font-family:Arial; font-size:14.667px">Mr. Li Feilie, President of China Natural Resources, commented: &#147;Beijing SinoTech Institute of Mineral Exploration Co., Ltd., our partner in this venture, is a subsidiary of China Non-ferrous Metals Resources Geological Survey, which is a PRC government authority. &nbsp;The acquisition forms the basis to strengthen our cooperation with the leading government exploration authority which supports the future growth of the Company in the mining industry.&#147;</P>
<P style="line-height:17.333px; margin-top:9.8px; margin-bottom:0px; font-family:Arial; font-size:14.667px">For convenience of the reader, RMB have been converted into US$ based upon the exchange rate of US$1.00 = RMB7.30, as quoted by the People&#146;s Bank of China on December 31, 2007. &nbsp;There is no assurance that RMB can actually be converted into US$ at this or any other rate.</P>
<P style="line-height:17.333px; margin-top:9.8px; margin-bottom:0px; font-family:Arial; font-size:14.667px">This press release includes forward-looking statements within the meaning of federal securities laws. &nbsp;These forward-looking statements are based upon assumptions believed to be reliable, but involve risks and uncertainties that may cause actual results of operations to differ materially from the forward-looking statements. &nbsp;Among the risks and uncertainties that could cause our actual results to differ from our forward-looking statements are our intent, belief and current expectations as to business operations and operating results of the Company, uncertainties regarding the governmental, economic and political circumstances in the People&#146;s Republic of China, risks and hazards associated with the Company&#146;s mining activities, uncertainties associated with ore reserve estimates, uncertainties associated with metal price volatility, uncertainties associated with the Company&#146;s rel
iance on third-party contractors and other risks detailed from time to time in the Company&#146;s Securities and Exchange Commission filings. Although the Company&#146;s management believes that the expectations reflected in forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to be accurate.</P>
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