Lateon the night of March 26^th, the on-site work team of South Africa ORKNEYGOLD MINE, led by the Chairman Lou Dingbo, ended a two-week tight trip andreturned to Shanghai successfully. Although the long journey made them all abit tired, the Chairman Lou Dingbo and other members of the work team got into thebusy domestic working again early this morning. The two-week field trip andon-site work have given the management of Pengxin Mining more inspiration andnew ideas about the work for the future phase of ORKNEY GOLD MINE (includingSMCO), and made all Pengxin Mining people full of confidence and motivation.

On March 7^th, the reorganization ofORKNEY GOLD MINE was approved by China Securities Regulatory Commission. OnMarch 12^th, Chairman Lou Dingbo led a team himself to South Africa.During his trip to South Africa, he visited the Economic and CommercialCounselor’s Office of China’s Embassy and the Office of China Council for thePromotion of Peaceful Reunification, had face-to-face communications withofficials of the North-West Provincial Mining Department, so as to find the“organization” and support for ORKNEY GOLD MINE and further promote ORKNEY Projectto set foot there. In addition, the in-depth talks with a number of potentialpartners made it possible for a rapid development of ORKNEY GOLD MINE; and theestablishment of contacts with local banks and law firms would increase theescort for the operation of ORKNEY GOLD MINE. The on-site work team also madethe relationship between the senior Chinese executive personnel and the localshareholders more intimate, which greatly enhanced the confidence of theshareholders.

Chairman Lou Dingbo and his team meet with the officials of theNorth-West Provincial Mining Department

At the meantime, the basic internal operationsof ORKNEY GOLD MINE are moving forward in an orderly manner every day. Througha number of internal meetings, everyone has united their thinking, clarifiedtheir work direction and refined the project plan, therefore, they could domore targeted. The on-site work team and members of ORKNEY Project go to thesite of ORKNEY GOLD MINE to have a field study of Mine No. 7, Mine No. 6 andMine No. 2, and they discuss the plan of the resumption of production, clarifythe set target for the resumption of production in the first half of the year.Moreover, the on-site work team also arrange multiple rounds of interviews ofsenior management to prepare key management talents for the resumption ofproduction of ORKNEY GOLD MINE.

Chairman Lou Dingbo and his team have a site visit to ORKNEY GOLD MINE

After finishing the tight journey to ORKNEYGOLD MINE, the on-site work team fly to Congo (Kinshasa) without a stop tocarry out related field work at SMCO. They have to look at SMCO’s on-siteproduction status, especially the latest development of cobalt project, learnabout the operations of the cobalt mine trading center, at the meantime, theymake field studies of a number of mines to get the latest developments ofsustaining resources in Congo (Kinshasa), so they are full of confidence in thefollow-up development of Congo (Kinshasa).

The Chairman Lou Dingbo’ s visit to the frontline of the project shows not only the great importance and confidence attachedto ORKNEY GOLD MINE by Pengxin Mining, but also set an example for the team. Itis reported that other senior management of Pengxin Mining will follow in theChairman’s footsteps to go to ORKNEY GOLD MINE and Congo (Kinshasa) SMCO tocarry out field work, so as to do the operations “truly”.