On 26 June 2008 the company plans to launch a private placement of between 15 mln and 25 mln shares to raise funds in order to purchase a 28.89% stake in Western Titanium Technologies Co., Ltd. for RMB 174.24 mln and a titanium renovation project with a production capacity of 5,000 tons annually from the Northwest Institute for Non-ferrous Metal Research for RMB 375.76 mln.

The Northwest Institute, holding 42.92 mln of the shares of the company, equal to a 46.95% stake, will subscribe to between 1 mln and 1.5 mln of the shares in cash while Xian Aerospace Science and Technology Industrial Co., Ltd. will subscribe to between 14 mln and 23.5 mln of the shares in cash.

The private placement will be launched within six months following the approval of the China Securities Regulatory Commission at a price of 90% of the average share price in the 20 trading days prior to the benchmark pricing date.

Trading in the company's shares resumed on 27 June at 10:30 am.

Source: www.stockstar.com

Date: 27 Jun 2008

CN01/BG/MZ/BT/KM