A BRIEF INTRODUCTION TO THE PROJECTS OF

 KUNMING IRON AND STEEL (GROUP) CO., LTD.

Project name: Dahongshan iron ore mine

Industries: Mining industry (non-ferrous metallurgical mine)

Location: Xingping county, Yuxi prefecture, Yunnan province, China

Project owner: KUNMING IRON AND STEEL (GROUP) CO., LTD.

Conditions: Iron ore reserves in this mining area are rich and reliable (450 million tons). Iron ore is in good quality and easy processed, the concentrate with a grade of 64%, P<0.02%, SiO2<7%). Iron ore user, iron-making plant of KUNMING IRON AND STEEL (GROUP) CO., LTD., a stable user, will purchase all the concentrate.

Contents: To build a large mine with an annual capacity of 4 million tons of iron ore, an iron ore dressing plant, a pipeline with a length of 197.5km and pump stations to transport 2.08 million tons of concentrate to users.

Total investment: USD237.515 million

Preparations: The project has been approved by China national planning committee. Water, power, gas supply and land leveling have been finished, the main tunnel has been completed.

Profit forecasting: an annual profit of USD44.051 million, with an internal income rate of 14.97%.

The way of investment: Could be negotiated.

Contact: Mr. Zhang Yongan

Tel: 0086+871 8606802      Fax: 0086+871 8606800

Add. Anning, Kunming, China  650302

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