Xinjiang Xinxin Mining Industry Co., Ltd. was incorporated as a joint stock company with limited liability on 1 September 2005 with a registered capital of RMB300 million by Xinjiang Non-ferrous Metal Industry (Group) Ltd., together with Shanghai Yilian Kuangneng Co. Ltd., Zhongjin Investment (Group) Ltd., Xiamen Zijin High-tech Co., Ltd., Shaanxi Honghao Industry Co., Ltd. and Xinjiang Xinying New Material Co. Ltd.

The Company has three branches, namely Kalatongke Mine, Fukang Refinery and Shanghai Sales Branch. The Kalatongke Mine is situated in Fuyun County in Xinjiang. It is one of the four exploration zones respectively covered by our four exploration permits. The Kalatongke Mine is approximately 450 km from Urumqi, the capital city of Xinjiang. We have obtained the land use rights of the Kalatongke Mine with a site area of approximately 1.4 million square metres. The Fukang Refinery is situated in Fukang City of Xinjiang with the mining resources in Kalatongke Mine as its base. It is the first enterprise engaged in refining non-ferrous metals in the PRC to adopt the wet process in the refining of nickel cathode. The technique employed in the Fukang Refinery is awarded the Scientific and Technological Progress First Prize, Star of Innovation and Creativity Technology Award of United Nations, and Scientific and Technological Progress First Prize of Xinjiang Uygur Autonomous Region etc. by the PRC and the China National Non-Ferrous Metals Industry Corp. Shanghai Sales Branch is situated in Shanghai, mainly engaged in sales business and is responsible for customer communication and exploration.

The Company principally engages in mining, ore processing, smelting, refining processing and sales of nickels, coppers and other non-ferrous metals in which the major products include nickel cathode, copper cathode, cobalt products, copper concentrate, gold, silver, platinum and palladium etc.

The Company will grasp the historic circumstances and business opportunities brought by the implementation of the development of the west by the PRC and the advantageous resource exchange strategy implemented by Xinjiang Uygur Autonomous Region, by perseverance, positioning at a high standing point with high efficiency and high quality to achieve the business objective: "to become one of the most resource-rich, efficient and profitable nickel-oriented and diversified metal mining companies in the PRC".

The Company originated from Sino-Russian Non-ferrous and Rare Metals Co. Ltd. ("Sino-Russian Non-ferrous") which was established in 1950 in accordance with the Sino-Soviet Treaty of Friendship, Alliance and Mutual Assistance. On 30 December 1954, Sino-Russian Non-ferrous became a PRC state-owned enterprise, and on 1 January 1955, Sino-Russian Non-ferrous changed its name to Xinjiang Industry Company.

In July 2000, the State Council reorganized the governing and administration system of non-ferrous metal enterprises in the PRC and as a result, the administration of Xinjiang Industry Company was transferred to the State-owned Asset Supervision and Administration Commission of Xinjiang Uygur Autonomous Region. On 15 March 2002, Xinjiang Non-ferrous was established as a wholly state-owned company with limited liability to administer and manage the non-ferrous metal enterprises in Xinjiang.

Prior to the Reorganization, Xinjiang Non-ferrous Metal Industry (Group) Ltd. had 22 wholly-owned subsidiaries, including Xinjiang Non-ferrous Kalatongke Mine and Xinjiang Non-ferrous Fukang Plant. Xinjiang Non-ferrous Metal Industry (Group) Ltd. was mainly engaged in the mining, ore processing, smelting and refining of non-ferrous metals, such as nickel, copper, lithium, beryllium, tantalum, niobium and gold. It was also engaged in the research, design, mechanical processing and construction services for the mining and processing of non-ferrous metals.

Pursuant to the Reorganisation, Xinjiang Xinxin Mining was established as a joint stock company with limited liability and registered capital of RMB300 million in the PRC on 1 September 2005. Xinjiang Non-ferrous Metal Industry (Group) Ltd., Shanghai Yilian Kuangneng Co. Ltd., Zhongjin Investment (Group) Ltd., Xiamen Zijin High-tech Co., Ltd., Xinjiang Xinying New Material Co. Ltd., and Shaanxi Honghao Industry Co., Ltd. were our Promoters.

Xinjiang Non-ferrous Metal Industry (Group) Ltd. injected all its nickel business together with associated copper and other non-ferrous metal businesses into our Company. Upon our Company's establishment, Xinjiang Non-ferrous Kalatongke Mine and Xinjiang Non-ferrous Fukang Plant became our branches, namely Kalatongke Branch and Fukang Branch, respectively. We have obtained all necessary approvals and completed the registration for the corporate transformation of the predecessors of Kalatongke Branch and Fukang Branch in 2005.
We conduct our underground mining, ore processing and smelting operations at the Kalatongke Mine. We have located and discovered 11 rock bodies, six of which were confirmed to have economically viable mineral resources.

As of the first quarter of 2007, there were approximately 40,879,700 tonnes of estimated ore resources in the rock bodies at the Kalatongke Mine.

We will continue to carry out investigation on the potential reserve of other rock bodies.