The three-year plus long-term account receivable balance of Huludao Zinc Industry Co., Ltd was RMB 567 million, and more than RMB 400 million is difficult to take back as historical reasons. In order to support the company development, Huludao Zinc Smelter Factory, shareholder of the company, will replace three-year plus account receivable of the company via land use right and other effective assets.

The two parties signed Agreement on Assets Replacement Debt Between Huludao Zinc Industry Co., Ltd and Huludao Zinc Smelter Factory in Huludao, Liaoning, on May 31st, 2007.