At the 10th Meeting of the 4th Board of Directors, held on 28 Oct 2008, the following proposals were examined and approved:

1. the 3Q 2008 Report
2. for Qinghai Salt Lake Yuantong Potash Co., Ltd., an affiliate of the company, to invest approximately RMB 620 mln in its own funds and banks loans to construct the 200,000 tonnes-a-year agricultural potassium nitrate project with a construction period of 2.5 years
The annual production of the by-product, sal ammoniac, will be 110,000 tonnes.

3. for Qinghai Salt Lake Sanyuan Potash Co., Ltd., a subsidiary of the company, to establish the 'Tsaidam Sanyuan Chemical Industry Co., Ltd.', with registered capital of RMB 60 mln
The new company will be responsible for the two-year construction of a 200,000 tonne-a-year alkali sulphide project with the 10,000 tonne-a-year polyphenyl thioether, a by-product.
The investment of approximately RMB 322,228,300 will be financed with its own funds and bank loans. An approximately RMB 100 mln annual profit is expected upon full production of the project.
4. the resignation of both Zhang Quanming and Ren Xuan as directors
5. to elect Wang Jianjun and Cheng Youhai as independent directors on the 4th Board of Directors

Proposals 2, 3, 5 and 6 will be submitted to a general meeting of shareholders for examination.

Board of Directors
28 Oct 2008


Source: Securities Times

Date: 30 Oct 2008

CN01/FL/JL/NK/KM