The company has received a civil ruling issued by the Intermediate People's Court of Heyuan, Guangdong Province, related to a loan guarantee dispute between the company, Shenzhen Ping An Bank, Shenzhen Haibin sub-branch, Xichang Zinc Industry Co., Ltd., Zarva Technology (Group) Co., Ltd., Zhang Bin, and Zhang Liangbin, stating that according to a settlement agreement signed by the company in December 2007 with Xichang Zinc and Shenzhen Ping An Bank, Haibin sub-branch, the company had been granted a waiver on its guarantee liability.

With the implementation of the settlement agreement, the Intermediate People's Court of Heyuan has unfrozen the assets of both the company and Xichang Zinc and additionally, has released the company's 28.58% stake in Sichuan Kangxi Copper Co., Ltd.

At present, the company's guarantee liability has been relieved. As of the date of this announcement, total guarantees provided by the company for related parties total RMB 535.05 mln.

Board of Directors
22 Aug 2008

Source: Shanghai Stock Exchange

Date: 25 Aug 2008

CN01/NW/DM/BT/MM