I. Project name: 60,000 t/a high purity industrial iron oxide

II. Project to be undertaken by: Xishanqiao Subdistrict Office of Yuhuatai District

III. Briefs of project undertaker:

Xishanqiao Subdistrict Office of Yuhuatai District is located close to the urban area of Nanjing City, with extremely convenient transport conditions. It connects No. 205 highway, No. 3 Yangtze River Bridge and the Ring Expressway. It has the affiliated Xishanqiao Industrial Park where there are complete associated facilities.

IV. Main content of project:

This project will used the solid phase coordinating process and technology that has been authenticated by the National Science and Technology Commission, to produce high purity industrial iron oxide with low silicon content. This product is the main raw material for making high-grade magnetic materials. The project of 60,000 t/a high purity industrial iron oxide can also have associated projects for 204,000 t/a high quality potassium sulfate and 125,000 t/a ammonium chloride.

V. Expected total investment and expected economic gains of project:

1. Total investment of project: 640 million yuan

2. Construction period of project: 1.5 years

3. Expected rate of return: %

4. Expected investment recovery period: 1.7 years

VI. Preliminary suggestion on cooperation and project progress:

1. Suggestion on cooperation: cooperative joint venture, the local partner takes shares with technology and the incoming partner provides capital

2. Initial period work progress and present status:

VII. Contact:

Address: Xishanqiao Subdistrict Office of Yuhuatai District, Nanjing

Zip: 210041

Contact person: Chen Jingmei

Telephone: 86-25-52806726

Fax: 86-25-52406726

E-mail: kunkun1007@sohu.com