Strategic Vertical Integration and Expansion
Leveraging on its years of experience and expertise, Burwill will be well positioned to manage the extension of its steel business from traditional steel trading and steel processing to resources exploration and development

Large Iron Ore Resource Base
One mining license and four exploration licenses covering in aggregate an area of approximately 21 sq. km. The mines possess total mineral resource1 of 844.32Mt, as classified under the Chinese National standards(if JORC resources of 643.26Mt in total)

• Tangezhuang Property 164.01Mt
• Heshanpo Property 680.31Mt

with average TFe grade of between 16.20%-22.63%, which the Company believes to be one of the largest in terms of resource for companies with iron ore fines currently listed on the HK Stock Exchange

On the basis of the 2010 annual mining and processing capacity of 10Mtpa, reserves could support mining in excess of 64 years assuming all resources could be mined

Fast Growth Profile
The Group has set out clear strategic development plans and targets to rapidly grow its iron ore business

The group expect its production to be 0.7mtpa of iron ore concentrates in 2010, and. targets to raise output to 1.5Mtpa and 3Mtpa in 2011 and 2012 respectively ; the iron ore concentrates production growth over 2010-2012E implies a CAGR of 107%

Low Cost Structure and High Quality Product
The mines have low estimated operating cost structure because of：

• open pit mining
• relatively high iron content of the ore
  - Tangezhuang property 16.29 to 21.83%TFe
  - Heshanpo property 16.11 to 31.50%TFe
  
• close proximity of the mines to the tailing dam
• dedicated on-site processing facilities which allow economical transportation to loading points
• proximity to customers
• the existence of a highly developed highway networks
• the access to a large base of relatively low cost and highly skilled Chinese mining workforce
• Management believe that the production cost can be further reduced upon commissioning of the new concentrators
• Through a three-stage crushing and a two-stage magnetic separation process, saleable iron concentrates with an average grade of 62% to 66% iron can be produced; the iron concentrates can sell at higher price when the grading of iron concentrates is high.

Located in Well-established Steel Manufacturing Base
The mines are located in Shandong Laiyang , low hilly environment, where the most developed highway networks in the country. The accessibility of the region is highly favourable to mining and operation of refinery

According to the China Coal Resource, crude steel output of Shandong Province was 44.59Mt in 2008 and was ranked as the third largest steel producing province in China behind Hebei and Jiangsu provinces. With an iron ore production of 16.40Mt in 2008, steel mills in Shandong Province are heavily reliant on ores and imports from overseas and other provinces in China

There are only limited large iron refineries and iron ore mines in Shandong Province, large domestic demand should safeguard the sales of the Group’s iron ore concentrates

The transport network in the region is excellent and vehicular access to the area is via a two-lane highway from Yantai or Qingdao to Laiyang, followed by a 10km road and 5km dirt road to the site

The project area is conveniently located, it has easy access to water, electricity and skilled workforce

Favorable Iron Ore Outlook in China
China’s October monthly crude steel output has risen 45% to 52mt from the low of 35mt in December 2008, representing an annualized 2009 output of c.600mt

China’s iron ore imports have sustained consistently above 50mt per month since March 2009, except October because of the national holiday period. In total, China imported c.628mt iron ore in 2009, 41% higher than 2008 total import

With Chinese consumption remaining elevated, tightness is likely to sustai

Over the past 2 years, prices of Shandong (Zibo and Laiwu) iron ore fines 64-66%Fe have commanded a 100% premium over Australia Pilbara FOB in average, due to factors such as freight, inland transport and taxes

Strong Track Record of Key Management Team to Manage the Mines

• The management has accumulated significant experiences in iron ore mining industry
• The management consist of engineers, geologists, technicians and project managers that have experience in managing iron projects in Shandong and other provinces of China

In order to maintain a stable supply of natural mineral resources, the Group has been prudently exploring and evaluating investment opportunities in natural resources projects, aiming to create a comprehensive value chain as well as to enhance shareholders' returns.

The Group has set up a strategic alliance with the Institute of Geology and Geophysics of Chinese Academy of Sciences ("IGGCAS"). IGGCAS is an authoritative organization in scientific research of natural mineral resources (geology, geophysics and geochemistry). A joint venture company has been established by IGGCAS and the City Government of Chizhou City of Anhui Province, China, for the exploration and subsequent businesses of a known megallogenic belt of over 1000 square meters in the jurisdiction of Chizhou City.

By cooperating with IGGCAS, the Group can benefit not only from the technical support from IGGCAS in the Group's projects, but also the opportunity to join in any prospective mining projects of IGGCAS in China.

It is one of the Group's long-term strategies to invest and engage in natural mineral resources exploration. We will continue to source keenly but prudently for high potential mining investment opportunities.