RMB 200 Mln Guarantee for Eerduosi Electric Power Metallurgy

At a meeting of the board of directors, held on 10 Oct 2008, a proposal was examined and approved to provide a guarantee on a six-month RMB 200 mln bank acceptance bill with Eerduosi Construction Bank, Qipanjing sub-branch, for Inner Mongolia Eerduosi Electric Power Metallurgy Co., Ltd., a subsidiary of the company.

As of the date of this announcement, guarantees provided by the company and its subsidiaries total RMB 2.25 bln, while guarantees provided by the company within the previous 12 months total RMB 1.46 mln.

Pursuant to requirements of Inner Mongolia Eerduosi Cashmere Products Group, a major shareholder of the company, the above-mentioned proposal will be submitted to the 4th 2008 Extraordinary General Meeting of Shareholders for examination and approval.

Board of Directors
13 Oct 2008


Source: Shanghai Stock Exchange

Date: 13 Oct 2008

CN01/NS/MR/BT/KM