In order to accelerate its development and control iron ore resources, Nanchang Changli Iron＆Steel Co., Ltd invested RMB25.5 million to purchase 30% stocks of Zijin TianOu Mining Industry Co., Ltd in Heyuan City affiliated to Nanchang Iron and Steel Co. Ltd.

By Dec 31st 2006, total assets of Zijin TianOu Mining Industry Co., Ltd amounted to RMB144.3862 million; stockholders’ equities RMB77.546 million. Besides, the sales revenue achieved RMB13.5051 million in 2006, but net profits were RMB0.7685 million to the bad.