Ⅰ. Project Background

Huinan Country Jinchuan Town Yongfeng Besalt Development Company is situated in Huinan Country Jinchuan Town Yongfeng Village. In order to shake off poverty and revitalize local economy, the County Party Committee and the County People’s Government decided to develop the local resources. Based on the basalt market of home and abroad, combining the resource advantages of Yongfeng basalt, the County Party Committee and the County People’s Government aim to run the business big and strong on the original foundation and create a new economic growth point of Huinan County

Jinchuan Town is one western member of the Longgang volcanic cluster. The main conclusions through the researches of the expert exploitation are: ① Jinchuan Town basalt is slow diffusion primary magma; ② The ultramafites encrusting compound in basalt is the remaining mineral association when pyrolite dissolved out of the basalt lava. ③The basalt lava originated from the deep earth mantle of about 70-90 k㎡, T=1337—1408℃,P=20.6—26.3kb; ④The characteristics of Longgang volcanic cluster is the comprehensive outcome that the earth upper mantle area contains water and structural fracture expands.

Merits of the ore: light constitution, even and smooth blowholes and so on, with great development value.

The total mineral reserves are 1,058 million cubic meters, development area 453 mu, development depth 35 meters. All could be used for processing and development of basalt series products.

II. Construction Scale and Production Plan

The overall floorage 20,000 ㎡, includes main workshop area: 10,000 ㎡; the floor space of accessory occupancy: 6,000 ㎡ and public manufacture area 4,000㎡.

III. Market Analysis and Economic Benefit Forecast

Economic Benefits: After the construction of the project, the annual attainable income is 150 million yuan, 10 million yuan tax, and 40 million yuan profits.

Social Benefits: After the construction of the project, the project can not only develop and utilize appropriately the local rich basalt 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 Arrangement

Total investment: RMB 230 million yuan, source of funds is self-financing 230 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. Project Progress

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

IX. Outline of Project Organizer

Huinan County Jinchuan Town Construction and Development Co. Ltd.

Legal Representative: Zhang Zhongliang

X. Contact Method

Tel: 13944572448