**Exhibit      10.45**

**Equity      Transfer Heads of Agreement**

**Purchaser**
**Company**
**Transaction**

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**1**
**The      Company**

|   | (a) | The                Company is a limited liability company registered at Taogouhe Village,                Baisangguan Town, Yun County, Hubei, People’s Republic of China                (“**PRC**”). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                registered capital of the Company is RMB 0.5 million. The registered                capital is fully paid up and not pledged or subject to a court freezing                order or claims or disputes. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The                Company holds a licence to explore for iron ore in Yun County, Hubei                Province (“**Mining** **Site**”                or the “**Mine**”),                which licence is described in Schedule 1 (“**Licence**”). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**2****Purchaser**

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**3****Selling      Equityholders**

**Selling      Equityholders**

| **Selling                Equityholder**                                                                                                                                                                                                  |   | **Percentage of ****Equity Held** |   | **Percentage ****of Equity to ****be Sold to ****the ****Purchaser** |   | **Percentage of ****Equity to be ****held following ****Completion of ****the Transaction** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Lu                Benzhao [    ] of Room 204, No. 17 Liyuan Village,                Huashan District, Maanshan, Anhui with PRC identity card number                340505195112240018                                |   |                                             | 48     | %                                                                                                            |   | 43                                                                                                                                            | %      |   | 5 | % |
| Lu                Nan [    ] of Room 204, No. 17 Liyuan Village, Huashan                District, Maanshan, Anhui with PRC identity card number                340503198603090238                                    |   |                                             | 42     | %                                                                                                            |   | 42                                                                                                                                            | %      |   | 0 | % |
| Jin                Yao Hui [    ] of Room 401, Unit 1, Tower 4, Phase 11,                Qingshan Street, Xinwu District, Wuhu, Anhui with PRC identity card                number                340204198403130717 |   |                                             | 10     | %                                                                                                            |   | 10                                                                                                                                            | %      |   | 0 | % |

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**4****Transaction**

**Mr      Lu**
**Purchase      Price**

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**5****Due      Diligence and Legal Documentation**

|   | (a) | The                Selling Equityholders shall at all times provide the Purchaser, its                representatives and professional advisers with access to the Company’s                premises, the Company’s documents and the Mining Site at all reasonable                times in order to conduct due diligence and the Selling Equityholders                shall keep the Purchaser promptly informed of all matters regarding                the                Company, the Mining Site and the application for a mining licence                that                covers the area covered by the                Licence. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                Purchaser and the Selling Equityholders shall use their best endeavours                to                negotiate and execute the following documents in form and substance                satisfactory to the Purchaser: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | equity                transfer agreement (“**Equity                Transfer Agreement**”); |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (ii) | joint                venture contract; |
|--------|------|----------------------------------------|

|   | (iii) | articles                of association; |
|--------|-------|-----------------------------------------|

|   | (iv) | management                services contract; and |
|--------|------|--------------------------------------------------|

|   | (v) | such                other transaction documents as the Purchaser may in its sole discretion                require, |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

**Definitive      Documents**

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**6****Loan      for Acquisition of a Licence to Mine at the Mine Site**

|   | (a) | In                consideration for the Selling Equityholders entering into this Equity                Transfer Heads of Agreement and if the Selling Equityholders and                the                Purchaser execute an agreement for the exclusive supply of iron ore                from                the Mine to the Purchaser (“**Exclusive                Supply Agreement**”)                on terms satisfactory to the Purchaser, the Purchaser shall arrange                for                the Company to receive a loan. The value of the loan shall be calculated                on the basis of RMB2 per tonne of iron ore that constitutes the reserve                at                the Mine Site as certified by an internationally recognised mining                consultant, subject to such loan never being more than RMB 1.2 billion                (“**Licence                Loan**”)                and on terms and conditions to be agreed. Both the Selling Equityholders                and the Purchaser acknowledge that the Licence Loan must be used                for the                sole purpose of paying fees for the acquisition of a licence to mine                at                the Mine Site. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                Company shall open a new bank account to receive the Licence Loan                funds                (“Licence Loan **Bank                Account**”).                Mr Lu Benzhao and a representative of the Purchaser will be appointed                joint signatories of the Bank Account, such that the Licence Loan                Bank                Account may not be operated without obtaining the signature of Lu                Benzhao                and the Purchaser’s representative. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If                the Purchaser is not registered as a 95% holder of registered capital                in                the Company prior to receipt of the Licence Loan amount in the Licence                Loan Bank Account, then the Selling Equityholders shall procure that                the                Company restructure its board of directors with five (5) members                and that                four (4) members be nominated by the Purchaser and one (1) member                be                appointed by the Selling Equityholders. One (1) of the four (4) members                to                be nominated by the Purchaser shall also be appointed as the Chairman                and                Legal Representative of the Company and shall hold the Company chop.                The                Selling Equityholders and the Company undertake to prepare, sign,                file or                otherwise all documents necessary to effect the formal appointment                and                registration of such directors in accordance with PRC laws and                regulations. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**7****Loan**

|   | (a) | In                consideration for the Selling Equityholders entering into this Equity                Transfer Heads of Agreement, the Purchaser shall arrange for the                Company                to receive a loan on or before 30 June 2007. The value of the loan                shall                be USD 10 million (“**Loan**”)                and the Selling Equityholders shall pledge their registered capital                in the                Company to the Purchaser (“**Security**”). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                Company shall open a new bank account to receive the Loan funds                (“**Bank** **Account**”).                Mr Lu Benzhao and a representative of the Purchaser will be appointed                joint signatories of the Bank Account, such that the Bank Account                may not                be operated without obtaining the signature of Lu Benzhao and the                Purchaser’s representative. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The                Selling Equityholders and the Company shall be responsible for and                cooperate with the Purchaser to obtain registration of the Loan and                the                Security with all necessary PRC government                authorities. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Upon                completion of the Transaction, the Purchaser may, in its sole discretion,                elect to set-off the Loan against the Purchase Price such that the                Purchase Price is reduced by the amount of the                Loan. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**8****Exclusivity**

|   | (a) | In                consideration of the Purchaser entering into this Equity Transfer                Heads of                Agreement, the Selling Equityholders shall not, and shall procure                that                their affiliates shall not, from the date of signing this Equity                Transfer                Heads of Agreement and 3 May 2012: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | solicit                offers from; |
|--------|-----|-------------------------------------|

|   | (ii) | negotiate                or hold discussions with; or |
|--------|------|-------------------------------------------------------|

|   | (iii) | enter                into any agreement or arrangement                with, |
|--------|-------|-----------------------------------------------------------------------------|

|   | (i) | to                sell or transfer or encumber any part of their equity interest in                the                registered capital of the Company;                or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | to                sell or transfer or lease any assets owned or operated by the Selling                Equityholders in connection with the Mining Sites, including the                Licences;                or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | to                borrow, exchange for value, receive as a gift, or otherwise, any                amount                that is applied to, received or used in connection with the Mines                or the                Licences. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | In                consideration of the Purchaser entering into this Equity Transfer                Heads of                Agreement, the Selling Equityholder shall not, and shall procure                that                their affiliates shall not, from the date of signing this Equity                Transfer                Heads of Agreement and 3 May 2012, develop, finance, or mine at the                Mine                Site or sell, gift, or exchange for value any product derived from                the                Mine Site, without the consent of the                Purchaser. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**9****Undertakings**

**9.1**
**Undertakings      by the Selling Equityholders**

|   | (a) | use                their best endeavours to negotiate and execute the Definitive                Documents; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (b) | provide                the Purchaser, its representatives and professional advisers with                access                to the Company’s premises, the Company’s documents and the Mining Site at                all reasonable times in order to conduct due diligence and keep the                Purchaser promptly informed of all matters regarding the Company,                the                Mining Site and the application for a licence to mine at the Mine                Site; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | rectify                any irregularities in the corporate existence of the Company and                obtain                any approvals, licences, consents, registrations or otherwise that                the                Purchaser may, in its sole discretion, require the Selling Equityholder                or                the Company to obtain in connection with the                Transaction; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (d) | pay                any amounts owing in respect of the Licences and perfect any                irregularities in the Company’s title to the Exploration Licence held and                obtain any licence, including without limitation a licence to mine                at the                Mine Site (which hereinafter shall also be referred to as a “**Licence**”)                and any environmental licences, necessary or required by the Company,                in                the Purchaser’s sole discretion, to exploit the Mine Site for a period of                no less than 3 years; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | execute                an agreement for the exclusive supply of iron ore from the Mines                to the                Purchaser (“Exclusive Supply Agreement”) on terms satisfactory to the                Purchaser |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**9.2**
**Undertakings      by the Purchaser**

|   | (a) | use                its best endeavours to negotiate and execute the Definitive Documents;                and |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (b) | execute                the Exclusive Supply Agreement on terms satisfactory to the                Purchaser. |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

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**10****Damages**

|   | (a) | Following                receipt by the Company of the Loan or contribution by the Purchaser                of USD                15,000,000 to the registered capital of Maanshan Global Mining Resources                Limited [   ] if the Selling Equityholders breach any of their                obligations under this Equity Transfer Heads of Agreement, the Selling                Equityholders shall jointly and severally be liable                to: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | repay                the Loan in accordance with its                terms; |
|--------|-----|----------------------------------------------------------------------------|

|   | (ii) | repay                the Licence Loan in accordance with its terms;                and |
|--------|------|----------------------------------------------------------------------------------------|

|   | (iii) | pay                all direct and indirect costs incurred by the Purchaser in connection                with                the Transaction including, without limitation, all legal, accounting,                finance, tax and technical mining advisor                fees. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Following                receipt by the Company of the Loan or contribution by the Purchaser                of USD                15,000,000 to the registered capital of Maanshan Global Mining Resources                Limited [   ] and in the event that the Selling                Equityholders: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | breach                clause 8 (“Exclusivity”) of this Equity Transfer Heads of Agreement;                or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | breach                clause 9.1(e) (“Exclusive Supply Agreement”) of this Equity Transfer Heads                of Agreement; or |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | breach                the Exclusive Supply Agreement; or |
|--------|-------|----------------------------------------------------------|

|   | (iv) | do                not own or cease to own the equity in the Company;                or |
|--------|------|----------------------------------------------------------------------------------------|

|   | (v) | do                not own or cease to own the Mine Site or the Licences;                or |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | (vi) | cease                business at the Mine Site or cease business or wind-up or deregister                the                Company; or |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------|

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|   | (vii) | take                any action or fail to take any action that prevents the Selling                Equityholders and/or the Purchaser from entering into the Definitive                Documents or completing the Transaction contemplated by this Equity                Transfer Heads of Agreement, |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | repay                the Loan in accordance with its                terms; |
|--------|-----|----------------------------------------------------------------------------|

|   | (B) | repay                the Licence Loan in accordance with its terms;                and |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (C) | pay                to the Purchaser an amount of USD 27,500,000 (or its RMB equivalent)                as                liquidated damages (“**Liquidated                Damages**”). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**11****Conditions      Precedent**

|   | (a) | The                Company has been duly incorporated with fully paid up registered                capital; |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (b) | The                Company and the Selling Equityholders have fully cooperated with                the                Purchaser, its representatives and professional advisers to assist                the                Purchaser to conduct its (i) technical mining due diligence, (ii)                financial due diligence, (iii) legal due diligence and (iv) commercial                due                diligence in respect of the Company and its rights to explore and                exploit                the Mining Site and, in each case, there is a successful completion                of                such due diligence and the results of which shall be satisfactory                to the                Purchaser; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The                execution of the Definitive Documents in form and substance satisfactory                to the Purchaser. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Execution                of a business plan between the Purchaser and Mr Lu regarding the                Company’s                future operations, including, without limitation, a plan for future                capitalisation of the Company; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Approval                by the board of directors of the                Purchaser; |
|--------|-----|------------------------------------------------------------------------------------|

|   | (f) | All                necessary corporate approvals and consents having been obtained,                including                those of the Company’s board of directors and each of the Selling                Equityholders waiving their pre-emptive rights to purchase each other’s                equity interest in the Company; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | All                Chinese government approvals, registrations, filings, consents and                permits                required for entry into the Definitive Documents, completion of the                Transactions contemplated by the Definitive Documents, transfer of                the                Licences, exploration and mining at the Mine Site, and the entry                into,                enforceability and performance of the Definitive Documents shall                have been                obtained and shall be in full force and effect, including without                limitation, any environmental or mining approvals or                licences; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (h) | The                Company holds a valid, effective and fully paid licence to explore                and                mine iron ore at the Mine Site, subject to such Licence being renewed                and/or expanded, for a period of no less than 3                years; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | An                approval letter having been issued indicating that the Purchaser                has                received approval to own 95% of the registered capital of the                Company; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | A                business licence having been issued indicating that the Purchaser                is the                registered owner of 95% of the registered capital of the Company                and that                the Company’s business licence has a business scope satisfactory to the                Purchaser, in its sole discretion; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Receipt                of a technical mining report issued by an internationally recognised                mining consultant indicating that the iron ore reserves at the Mine                Site                are no less than 600 million metric tonnes and that the iron ore                reserves                held at the processing facility are no less than 200 million metric                tonnes; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Issue                of a valuation report by the Company prepared by a PRC registered                valuation firm indicating that the Company’s valuation is no more than the                Purchase Price; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | Evidence                that all taxes and fees incurred in connection with the Licence and                operation of the Mine Site have been duly paid as at the date of                completion of the Transaction; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | Evidence                that the Company has good title to all buildings used in connection                with                the operation of the Mine Site and the processing of the iron ore                and has                obtained the consent of any landlord to the assignment of any leased                premises; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | Evidence                that the Company has good title to all land used in connection with                the                operation of the Mine Site and the processing of iron ore or has                obtained                the consent of any landlord to the assignment of any leased                premises; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | Evidence                that all loans between the Company and any other third party have                been                unwound; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | Receipt                of a copy of each of the Selling Equityholders PRC identity                cards; |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | (r) | There                being no material adverse change in the financial condition or business                prospects of the Company or the Mine Site or the Licences or the                estimated                iron ore reserves of the Mining Site since the conclusion of the                technical, financial, legal and commercial due diligence;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (s) | Other                conditions precedent to be determined following the Purchaser’s due                diligence. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

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**12****Warranties**

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|   | (a) | The                Company is a corporation duly organized, validly existing and in                good                standing under the laws of the People’s Republic of China (“**PRC**”),                with fully paid up registered capital and full corporate power and                authority to own, lease and dispose of its assets and                properties; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                identity of the Selling Equityholders and their existing                equityholding; |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (c) | The                equity to be sold in connection with the Transaction being free from                any                security interest or third party                claims; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The                Company conducting business within its authorised business                scope; |
|--------|-----|-----------------------------------------------------------------------------------------------------|

|   | (e) | The                Company having all consents, licences and approvals required to conduct                its business, including but not limited to a current and valid Exploration                Licence [   ] and Mining Licence [   ], which                consents, licences and approvals are not subject to cancellation                or third                party claims as a result of this Transaction or                otherwise; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | The                Company having passed its annual inspection for 2006 and any other                inspections conducted by any governmental or administrative authority,                including without limitation any regarding mine safety and environmental                compliance; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | There                being no disputes, investigations, litigation, administrative proceedings,                arbitration or mediation whether existing, threatened or potential                with                regard to the Company; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | All                documents provided by the Company and by the Selling Equityholders                to the                Purchaser is true, correct and not misleading in any                respect; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | The                Company’s audited balance sheet as at 31 December 2006, represents a true                and fair view of the Company’s accounts as at 31 December                2006; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | The                Company has no undisclosed or contingent liabilities and no outstanding                loans; |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (k) | All                tax liabilities incurred by the Company as at the date of completion                of                the Transaction have been paid in full or accrued sufficiently in                the                Company’s accounts; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Any                resource tax and resource compensation incurred in connection with                the                Licence and operation of the Mine Site has been fully paid or accrued                sufficiently in the Company’s accounts as at the date of completion of the                Transaction; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | The                Company has good title to all buildings used in connection with the                operation of the Mine Site or has obtained the consent of any landlord                to                the assignment of any leased                premises; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | The                Company has good title to all land used in connection with the operation                of the Mine Site or has obtained the consent of any landlord to the                assignment of any leased premises; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | All                loans between the Company and any other third party have been                unwound; |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | (p) | All                environmental liabilities incurred by the Company have been paid                in full                or accrued sufficiently in the Company’s                accounts; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (q) | All                salaries, social security payments and any other employee benefits                of the                Company’s employees have been paid in full or accrued sufficiently in the                Company’s accounts; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | The                Company has complied with all relevant laws and regulations, including                without limitation, any laws regarding the environment, mine safety                and                worker safety; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (s) | Selling                Equityholders are not aware of any matter which may result in the                loss of                the Licences or inability to renew the                Licences; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (t) | Selling                Equityholders have not given any guarantees to any Selling Equityholder                or                any third party; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (u) | Other                warranties that would be standard for a transaction of this type,                as well                as any others that may arise as a result of continuing due diligence                by                the Purchaser, its representatives and professional                advisers. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**13****Indemnities**

|   | (a) | taxation; |
|--------|-----|-----------|

|   | (b) | environmental                and land degradation; |
|--------|-----|----------------------------------------------------|

|   | (c) | mine                and worker safety; |
|--------|-----|----------------------------------------|

|   | (d) | all                liabilities that are not disclosed to the Purchaser by the Selling                Equityholders in writing; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | payment                of amounts owing in connection with the operation of the Mine Sites,                the                Licences, leases, licences or land use                rights |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | payment                of employee salary and benefits; |
|--------|-----|---------------------------------------------------------|

|   | (g) | breach                of any laws or regulations, including without limitation, any with                respect                to environment, mine safety, worker safety and the built environment;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | other                appropriate matters that may become evident in the course of continuing                due diligence by the Purchaser, its representatives and professional                advisers. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**14****Management      Services Contract**

**MSC**
**Consultant**

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|   | (a) | Consultant                shall provide operational management services to the                Purchaser; |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | (b) | The                term of the MSC shall be eight (8) years on a full time basis from                completion of the Transaction; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Consultant                shall be responsible for any approvals required for its entry into                the MSC                and all taxes, whether inside or outside the PRC, associated with                payment                of the Consultant’s salary. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**15****Non-competition      **

**15.1      **
**Non-competition**

|   | (a) | Following                execution of this Equity Transfer Heads of Agreement for a period                of five                (5) years following completion of the Transaction, the Selling                Equityholders and their affiliates shall not directly or indirectly                or in                any manner whatsoever own or participate or be involved in any way                in any                business that explores, exploits, processes, purifies, transports,                trades                or deals in any other way in any mined product in the                PRC. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Notwithstanding                clause 15.1(a), the Selling Equityholdersmay hold a passive investment                of                less than 10% equity in listed companies that hold investments in                any                mined product and hold their investments in respect of Nanjing Sudan                Mining Co., Ltd [   ] and assets from Maanshan Zhaoyuan Mining                Co., Ltd [   ] and assets from Xiaonanshan Mining Co., Ltd                [   ]. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**15.2**
**Right      of First Refusal**

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**16****Time      Schedule**

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**17****Language,      Governing Law and Dispute Resolution**

**17.1**
**Language**

**17.2**
**Governing      Law**

**17.3**
**Dispute      Resolution**

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**18****General**

**18.1**
**General      Warranties**

|   | (a) | it                has full legal right, power and authority to enter into this Equity                Transfer Heads of Agreement and to perform and comply with its obligations                thereunder; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | it                has in full force and effect the authorisations necessary for it                to enter                into this Equity and Assets Transfer Heads of Agreement;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | its                obligations under this Equity Transfer Heads of Agreement are legal,                valid                and binding and are enforceable against it in accordance with its                terms;                and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | it                is duly incorporated or established and validly existing at its place                of                registration and its equity and assets are not pledged or subject                to a                court freezing order or claims and disputes;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | no                litigation, arbitration or administrative proceeding is currently                taking                place or pending or threatened against it or its                assets. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | each                has full legal right, power and authority to enter into this Equity                Transfer Heads of Agreement and to perform and comply with its obligations                thereunder; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | their                obligations under this Equity Transfer Heads of Agreement are legal,                valid                and binding and are enforceable against them in accordance with its                terms;                and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (c) | no                litigation, arbitration or administrative proceeding is currently                taking                place or pending or threatened against them or their                assets. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**18.2**
**Successors      and assignment**

**18.3**
**No      partnership or agency**

**18.4**
**Entire      agreement**

**18.5**
**Variation      and waiver**

**18.6**
**Copies**

**18.7**
**Foreign      Exchange**

**18.8**
**Partial      invalidity**

**18.9**
**Amendment**

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**18.10**
**Binding      effect**

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| Executed                on 4 May 2007 by the following         |   |   |
|----------------------------------------------------------------|--------|--------|
|                                                           |   |   |   |
| **EXECUTED                by CHINA GLOBAL**                    | )      |   |   |
| **MINING                RESOURCES LIMITED**                    | )      |   |   |
| by                its authorised director:                     | )      |   |   |
|                                                           | )      |   |   |
|                                                           | )      |   |   |
|                                                           | )      |   | For                and on behalf of |
| Signature                of director                           | )      |   | CHINA                GLOBAL MINING RESOURCES LIMITED |
|                                                           | )      |   | [**   **] |
|                                                           | )      |   |   |
|                                                           | )      |   | /s/ |
| Name                of director (block letters)                | )      |   | *Authorised                Signature(s)* |
|                                                           | )      |   |   |
|                                                           | )      |   |   |
|                                                           | )      |   |   |
| **SIGNED                by LU, BENZHAO [   ]:** | )      |   |   |
|                                                           | )      |   |   |
|                                                           | )      |   |   |
| /s/                                                            | )      |   | /s/ |
| Signature                                                      | )      |   | Witness                Signature |
|                                                           | )      |   |   |
|                                                           | )      |   |   |
|                                                           | )      |   |   |
| Print                Name                                      | )      |   |   |
|                                                           | )      |   |   |
|                                                           | )      |   |   |
|                                                           | )      |   |   |
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| **SIGNED                by Lu Nan [   ]**       | **)**  |   |   |
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| /s/                                                            | )      |   |   |
| Signature                                                      | )      |   |   |
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| Print                Name                                      | )      |   |   |
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| **SIGNED                by Jin Yao Hui [   ]**  | **)**  |   |   |
|                                                           | )      |   |   |
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| /s/                                                            | )      |   |   |
| Signature                                                      | )      |   |   |
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| Print                Name                                      | )      |   |   |

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**SCHEDULE      1 **

**Exploration      Licence**

|                                     | **Exploration                  Licence**                                                                 |
|------------------------------------------|----------------------------------------------------------------------------------------------------------|
| **Licence                  number**      | 4200000630337                                                                                            |
|                                     |                                                                                                     |
| **Licence                  holder**      | Hubei                  Yun County Changjiang Mining Company Limited                                      |
|                                     |                                                                                                     |
| **Project                  name**        | General                  exploration of Laowan Iron Mine in Yun County, Hubei                  Province  |
|                                     |                                                                                                     |
| **Geological                  location** | Yun                  County, Hubei Province                                                              |
|                                     |                                                                                                     |
| **Plot                  Number**         | I49E019012,                  I49E019013                                                                  |
|                                     |                                                                                                     |
| **Exploration                  area**    | 17.78                  km2                                                                               |
|                                     |                                                                                                     |
| **Exploration                  unit**    | No.                  4 Geological Team of Henan Coloured Metal Geological Mining                  Bureau |
|                                     |                                                                                                     |
| **Licence                  period**      | 26                  Oct 2006 to 25 Oct 2007                                                              |

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**SCHEDULE      2 **

**Joint      Venture Contract**

| **1.                Registered Capital**  | Within                30 days of the issue of the Company’s amended business licence evidencing                that it is registered as a sino-foreign joint venture, the Purchaser                shall                contribute RMB100 million and Mr Lu shall contribute RMB5,000,000                to the                registered capital of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **2.                Board of Directors**  | (a) The                Board of Directors of the Company (the “**Board**”)                shall be comprised of 5 directors. Of these 5 directors, 4 directors                are                to be appointed by the Purchaser (one of whom shall be appointed                as                Chairman) and 1 director is to be nominated by the Mr Lu                Benzhao. (b) All                Board resolutions other than those that are required under PRC law                to be                passed unanimously shall be passed by a simple majority of the                directors. (c) Quorum                for meetings of the Board shall be two-thirds of all                directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **3.                Disposal of Equity**  | Pre-emptive                rights shall apply to equityholders seeking to dispose of equity                to third                parties. Mr                Lu shall waive his pre-emptive rights against the Purchaser with                respect                to the transfer of equity by the Purchaser to its affiliate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **4.                Future Financing**    | (a) Additional                Capital Increase by both Parties If                the Company requires capital, then the parties shall contribute capital                to                the Company in proportion to their respective equityholdings in the                Company. However, if either party is not in a position or not willing                to                make such additional capital contribution, the party that does not                contribute additional capital shall have their equityholding diluted                and                each party shall take all steps necessary to ensure that the adjustment                and dilution are approved and registered with the relevant government                authorities. (b) Bank                Loans and Guarantees If                the Company requires capital, then the parties may borrow that capital                from a bank. If the Company borrows money from a bank, then each                equityholder shall be responsible for providing a guarantee for that                proportion of the loan that represents their equityholding in the                Company. |

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