its 96.5%-owned cooperative joint venture company Inner Mongolia Pacific Mining has
entered into the a geological exploration design agreement with Jinsheng Mining, a
wholly-owned subsidiary of ultimate controlling shareholder China National Gold Group.
Jinsheng Mining has agreed to prepare the next stage geological exploration design with
respect to the Haoyaoerhudong region of the Chang Shan Hao (CSH) mine for a service fee of
Rmb60,000. The project shall be completed by 31 October this year.
Inner Mongolia Pacific has also entered into an ore processing technology
development agreement with China National Gold Group Technical Centre. The Technical
Centre has agreed to provide research and development services to advance the ore
processing technology of the CSH Mine and Jiama Mine for a total of Rmb5 million.
Further, Huatailong has also entered into a purchase agreement with Henan Jinyuan to
purchase from Henan Jinyuan ball mill liners and spare parts for the ball mill liners at
the Jiama Mine for Rmb975,669.38. (HL)