24% Stake for RMB 49.6 Mln

At the 13th Meeting of the 6th Board of Directors, held on 23 Oct 2008, the following proposals were examined and approved:

1. the 3Q 2008 Report
2. to sign an equity transfer agreement with Gao Hongliang
The company plans to purchase a 24% stake in Duolun Baoyuan Mineral Co., Ltd., (with registered capital of RMB 30 mln). Following consultation, the transfer price is settled at RMB 49.6 mln, based on RMB 206.7 mln in assessed net asset value of Duolun Baoyuan as of 30 Jun 2008. Following the acquisition, the company will hold a 24% stake in Duolun Baoyuan.

Board of Directors
27 Oct 2008


Source: Shanghai Stock Exchange

Date: 28 Oct 2008

CN01/NZ/VW/DM/NK/KM