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".