June 30, 2008 Reported findings of a an investigation and analysis to determine an independent opinion on
the fair market value of the exploration right. It was reported that in August 2006, Shandong Institute of Geophysical and Geochemical Exploration submitted the Report on the Initial Progress of the CSAMT Method in respect of the Study of Mineral Prospecting by Geophysical Method in Zhaojiaan-Guojiahe District in
Zhaoyuan City, Shandong Province, which completed the surveying of 303 points. The information of such report also reveals that gold ore bodies are located in the steep-and-thengentle sections of the Zhaoping Fault Belt and concentrated on the gentle section. This demonstrates that enlarged zone in -500m ~ -600m in this area represents a zone for mineralization. The structures within this area mainly consist of resilience changing structure and fragile fracture structure etc, of which the fragile fracture structure is mostly developed and is closely related to gold mineralization.