About NEWTON RES Company

New Mining Resources Co., Ltd. is the largest private company in Hebei Province, China and the sixth largest iron ore operator in the province. It has huge ore reserves and resources. Through low production costs and rapid increase in production capacity to enhance growth potential, it also has plenty of exploration opportunities. It has a strategic advantage geographically, and has been able to seize market opportunities brought about by strong growth in China's steel production and serious shortage of local iron ore supply. The Yanjiazhuang iron ore we own and operate is a large-scale open-pit iron ore area, covering a mining area of about 5.22 square kilometers. According to independent technical reports, the Yanjiazhuang iron ore has determined and estimated reserves of about 260.0 million tons, calculated from the amount of iron ore resources discovered and controlled on December 31, 2010, about 311.8 million tons. Our overall goal is for iron ore mining and washing production capacity to reach 10,500 thousand tons per year by the end of 2012. The low content of harmful chemical elements such as sulfur and phosphorus in our iron ore resources can reduce the need for tailings treatment, so we will be able to produce iron concentrate powder with an iron grade of 66% using a relatively simple iron ore washing process. Since we use open pit mining to extract resources, the construction time for mining infrastructure is short, capital expenditure requirements are low, and the iron ore mining process is relatively simple. In addition, iron ore is also mined and washed using low-cost mining and washing methods. Based on these facts, we believe we can keep mining costs low.