I. Project Background

Huinan County Jinchuan Town Malongquan factory which develops 300,000 tons mineral water is situated in Jinchuan Town Yongfeng Village, at northern latitude 42°17′29″ and southern latitude 126°20′04″. It belongs to the forest area with few arable lands. Because of the decrease of the fall of timbers, the development of the local economy was once declining. In order to shake off poverty and revitalize the local economy, the County Party Committee and the County People’s Government decided to develop local resources. According to the mineral water market of home and abroad, combining the resource advantages of Malongquan mineral water, the Committee and the Government aims to run the business big and strong on the original foundation and create a new economic growth point of Huinan County.

Since 1987 that Jilin Province Geological and Mineral Bureau Reginal Geological Mineral Inquiry Agency Longgang Volcanic Cluster Research Group found Gushanquan mineral water, the company entrusted Huinan County Jinchuan Town Government to explore and monitor the mineral water for years and appraised by the State authorities. The quality of the mineral water meets the national standard of drinking natural mineral water. It belongs to low mineralized metasilicic acid tense miemite type of mineral water. The quality of water looks good, tastes nice and has no pollution. The chemical type of this mineral water is seldom seen in China. It is a high quality natural mineral water. The natural flow rate of the mineral water is 5,000 tons per day. The allowable developed-capacity of the water is 3,750 tons per day, and the water contains hsio 31.9. The condition of development and utilization is natural flow so it could be the water supply for both the bottle mineral water and the mineral water series products and be developed further.

II. The Necessity to Develop Malongquan Mineral Water:

⑴ Rich supply, stable flow of water and has tremendous development potential.

⑵ Good quality; unique chemical type of water; belongs to low mineralized metasilicic acid tense miemite type of mineral water; rich in containing more than 20 types of trace elements which are good for health. The quality of water looks good and tastes nice. The temperature of the water annually maintains between 7℃ to 8℃, PH value is neutral.

⑶The surroundings of the mineral water maintain benign natural eco-environment with no pollution. According to the monitor of the State and Province authorities, the number of bacteria (Escherichia coli) in Malongquan mineral water is almost zero. The index of volatile phenol, cyanide, nitrous acid and so on meets the national standard. The location of the water is in Jinchuan Town Yongfeng Village with the forest coverage of over 90%. The natural ecological environment is good which can promote a benign cycle and sustainable development and utilization of Malongquan natural mineral water.

III. Market Analysis and Economic Benefit Forecast

1. Economic Benefits: After the construction of the project, the annual attainable income is 200 million yuan, 10 million yuan tax, and 40 million yuan profits.

2. Social Benefits: After the construction of the project, the project can not only develop and utilize appropriately the local rich mineral water resources, but also create good economic benefits for the enterprise, increase the income of local public finance and promote the economic development of Huinan County.

IV. Total Project Investment and Financing Plan

Total investment: 260 million yuan, self-financing 260 million yuan.

V. Cooperation Ways

Party A provides electricity, communication, site of the factory and resources. Party B establishes the factory with sole capital.

VI. Foreign Investment and Constitution

Sole proprietorship

VII. Project Construction Venue

Yongfeng Village, Jinchuan Town, Huinan County, Jilin Province

VIII. Construction Scale and the Main Construction Content

The overall floorage 16,000 ㎡, includes main workshop area: 5,000 ㎡; the floor space of accessory occupancy: 6,000 ㎡ and public manufacture area 5,000㎡.

IX. Project Progress

At present, the project is dealing with establishment of the factory; planning the site selection; land preliminary examination; environmental assessment etc.

X. Outline of Project Organizer

Huinan County Jinchuan Town Construction and Development Co. Ltd.

Legal Representative: Zhang Zhongliang

XI. Contact Method

Tel: 13944572448