Project Name: Yanan iron mine general investigation project
Project Construction Unit: Hami City Bureau of Land and Resources

I Geographic Position
The mine is located at southeast of Hami City and about 160 kilometers from Hami, the
geographical coordinates is east longitude: 94°18' 00" --94°21 ' 00" ; North latitude'
41°40' 00" --41°42'00" , and the area is 15.39 square kilometers.

I Progress of the Project
In 2004, Geological Exploration Bureau for Non-ferrous Metals has carried out iron mine
general investigation here, the length of investigated area is 20--100 meters and the width
of which is 3--5 meters, by 1: 10,000 chemical prospecting secondary halo survey and
1:5,000 geologic, gravity and magnetic method survey, found clue of iron mine magnetic
abnormity, after drilling verified, found that the iron reserves has a large scale and high
grade, the primary calculation showed that content of iron is 47 percent, content of
phosphor is 0.28 percent, and content of sulfur is 0.32 percent.

I Outlines for Geologic Working
On the basis of current materials, geologic mapping, geochemical profile survey and
drilling, trough and well prospecting has been carried out, and exploration and evaluation
upon Yanan iron mine has also been carried out, these work have found the geologic
mineralization rules and mineralization enrichment rules of the mine, and made final
conclusions on the distributing scope and scale of mine body and quality, variety, grade
of iron ore.

l Estimation of Investment and Forms of Cooperation
The estimated project general investigation charges are 5 million Yuan.
Form of Cooperation: sole investment or other forms.
Contact Unit: Hami City Bureau of Land and Resources

Tel: 0902- 2234169 2257009
Contact Person: Xia Ping Qian Daoquan