In order to set our foothold in the industry and increase the reserves, the Company’s mining subsidiary Puer Feilong Company will place a top priority in geological exploration in 2007 and 2008 and adopt a series of effective measures including strengthened management in exploration, additional capital investment and technical upgrades.

Recently, the geological exploration and additional reserves of Puer Feilong received promising results. According to the geological analysis, the ore distribution and resource reserves in Puer Plant Mine is expected to make a breakthrough in progress.