**Exhibit      10.46**

**Equity      and Asset Transfer Heads of Agreement**

**“Purchaser”**
**“Transactions”**

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**1 Sellers**

|   | (i) | Lu                Benzhao [  ] of Room 204, No. 17 Liyuan Village, Huashan                District, Maanshan, Auhui; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Lu                Nan [  ] of Room 204, No. 17 Liyuan Village, Huashan District,                Maanshan, Auhui; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Maanshan                Zhaoyuan Mining Co., Ltd [  ] (**“Zhaoyuan”**)                of No. 6 Hongqinan Road, Economic and Technology Development Zone,                Maanshan, Anhui; and |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Xiaonanshan                Mining Co., Ltd [  ] (**“Xiaonanshan”**)                of Xiaonanshan, Huoli Town, Huashan District, Maanshan,                Anhui, |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**“Sellers”**

|   | (b) | The                Sellers hold licences to mine iron ore at Maanshan and Xiaonanshan                (**“Mining                Sites”**                or                the **“Mines”**),                which licences include those described in Schedule 1 (**“Licences”**). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | 52%                of the registered capital of Nanjing Sudan Mining Co., Ltd [  ]                of Danyang (Hengxi) Town; Jiangning District, Nanjing, Jiangsu                (**“Sudan”**)                from Mr Lu Benzhao; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | 48%                of the registered capital of Sudan from Mr Lu Nan;                and |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (c) | the                assets described in Schedule 1 from Zhaoyuan or Mr Lu Benzhao or                Mr Lu                Nan, as the case may be, along with any other assets owned or used                in                connection with such mining rights (including any renewal, variation                or                expansion of any Licence, which shall also be referred to as **“Licences”**)                and the operation of the Mine Site;                and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (d) | the                assets described in Schedule 1 from Xiaonanshan or Mr Lu Benzhao                or Mr Lu                Nan, as the case may be, along with any other assets owned or used                in                connection with such mining rights (including any renewal, variation                or                expansion of any Licence, which shall also be referred to as **“Licences”**)                and the operation of the Mine Site;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | management                services from Mr Lu Benzhao or his nominee, as detailed in clause                1l of                this Equity and Asset Transfer Heads of                Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**“First      Deposit”**

**“Second      Deposit”**

**“Additional      Amounts”**

**“Purchase      Price”**

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**4 Exclusivity**

|   | (a) | In                consideration of the Purchaser entering into this Equity and Asset                Transfer Heads of Agreement, the Sellers and Sudan shall not, and                shall                procure that their affiliates shall not, from the date of signing                this                Equity and Asset 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 Sudan, Zhaoyuan and Xiaonanshan;                or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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|   | (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 and Asset                Transfer Heads of Agreement the Sellers shall not, and shall procure                that                their affiliates shall not, from the date of signing this Equity                and Asset                Transfer Heads of Agreement, 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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**5****Due Diligence and Legal      Documentation**

|   | (a) | The                Sellers and Sudan shall provide the Purchaser, its representatives                and                professional advisers with access to their premises, their documents                and                the Mining Sites at all reasonable times in order to conduct due                diligence                and the Sellers and Sudan shall keep the Purchaser promptly informed                of                all matters relevant to the Transactions, including without limitation                the                Licences, the Mining Sites and                Sudan. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (i) | equity                transfer agreement; |
|--------|-----|-------------------------------------------|

|   | (ii) | asset                transfer agreements; |
|--------|------|-------------------------------------------|

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

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

**“Definitive      Documents”**

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**6****Undertakings**

**6.1**
**Undertakings      by the Sellers**

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

|   | (b) | provide                the Purchaser, its representatives and professional advisers with                access                to their premises, their documents and the Mining Sites at all reasonable                times in order to conduct due diligence and keep the Purchaser promptly                informed of all matters relevant to the Transaction including, without                limitation, the Licences, the Mining Sites and                Sudan. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | rectify                any irregularities in the corporate existence of Sudan, Zhaoyuan                and                Xiaonanshan and obtain any approvals, licences, consents, registrations                or                otherwise that the Purchaser may, in its sole discretion, require                the                Sellers or Sudan to obtain in connection with the                Transactions; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (d) | pay                any amounts owing in respect of the Licences and perfect any                irregularities in the Sellers' title to the Licences held and obtain                any                licence, including without limitation any environmental licences,                necessary or required by the Sellers, in the Purchaser's sole discretion,                to exploit the Mine Sites; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | conduct                any restructuring or reorganisation required by the Purchaser, in                its sole                discretion, or the assets to be sold by the Sellers in connection                with the                Transactions; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | 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. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**6.2**
**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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**7 Damages**

|   | (a) | In                the event that the Sellers or Sudan breach any of their obligations                under                this Equity and Assets Transfer Heads of Agreement, the Sellers and                Sudan                shall jointly and severally be liable                to: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | refund                to the Purchaser the First Deposit, the Second Deposit and Additional                Amount (if any) referred to in clause                3; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | pay                damages to the Purchaser in the amount of two times the First Deposit                and                two times the Second Deposit and two times the Additional Amount                (if any)                referred to in clause 3; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (b) | In                the event that the Sellers or                Sudan: |
|--------|-----|-----------------------------------------------------------------------|

|   | (i) | breach                clause 4 (“Exclusivity”) of this Equity and Asset Transfer Heads of                Agreement; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | breach                clause 6.1(f) (“Exclusive Supply Agreement”) of this Equity and Asset                Transfer Heads of Agreement; or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (iv) | do                not own or cease to own the equity in Sudan, Xiaonanshan and                Zhaoyuan; |
|--------|------|---------------------------------------------------------------------------------------------------------|

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

|   | (vi) | cease                business at the Mine Site or cease business or wind-up or deregister                Sudan, Xiaonanshan and Zhaoyuan or |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (A) | refund                to the Purchaser the First Deposit, the Second Deposit and Additional                Amount (if any) referred to in clause 3;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | pay                to the Purchaser an amount of USD 33 million (or its RMB equivalent)                as                liquidated damages (**“Liquidated                Damages”**). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**8 Conditions      Precedent**

|   | (a) | Sudan,                Zhaoyuan and Xiaonanshan have been duly incorporated with fully paid                up                registered capital; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                Sellers and Sudan 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 Transactions 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 as the Purchaser may in its sole discretion                require. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (e) | All                necessary corporate approvals and consents having been obtained,                including                those of the board of directors of Zhaoyuan and                Xiaonanshan |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | each                of Lu Benzhao and Lu Nan waiving their pre-emptive rights to purchase                each                other's equity interest in Sudan; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (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, mining at the Mine Sites, processing of iron ore at Sudan's                facility 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; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | The                Sellers, where applicable, hold valid, effective and fully paid licences                to explore and mine iron ore at the Mine Sites, subject to such Licences                being renewed and/or expanded, where applicable, 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 100% of the registered capital of                Sudan; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | A                business licence having been issued indicating that the Purchaser                is the                registered owner of 100% of the registered capital of Sudan and that                Sudan'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                pursuant to the Licence held by Zhaoyuan are 9,600,000 metric tonnes                and                at the Mine Site pursuant to the Licence held by Xiaonanshan are                1,000,000                metric tonnes; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Issue                of a valuation report on Sudan and the assets to be sold by Xiaonanshan                and Zhaoyuan prepared by a PRC registered valuation firm indicating                that                the cumulative valuation of the Transactions is no more than the                Purchase                Price or its RMB equivalent; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (n) | Evidence                that the Sellers have good title to all buildings used in connection                with                the operation of the Mine Sites or have obtained the consent of any                landlord to the assignment of any leased                premises; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | Evidence                that the Sellers have good title to all land used in connection with                the                operation of the Mine Sites or have obtained the consent of any landlord                to the assignment of any leased                premises; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (q) | Receipt                of a copy of the Sellers PRC identity cards or business licences,                as the                case may be; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | There                being no material adverse change in the financial condition or business                prospects of Sudan or the Mining Sites or the Licences or the estimated                iron ore reserves of the Mining Sites 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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**9 Warranties**

|   | (a) | Sudan,                Zhaoyuan and Xiaonanshan are corporations 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 their assets and                properties; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                percentage ownership of the registered capital of Sudan held by the                Sellers; |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (c) | The                Sellers having title to the Licences free from any security interest                or                third party claims; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (e) | Sudan                conducting business within its authorised business                scope; |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (f) | Sudan                having all consents, licences and approvals required to conduct its                business, which consents, licences and approvals are not subject                to                cancellation or third party claims as a result of these Transactions                or                otherwise; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Sudan,                Zhaoyuan and Xiaonanshan having passed their 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; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (i) | All                documents provided by the Sellers and Sudan to the Purchaser is true,                correct and not misleading in any                respect; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Sudan,                Zhaoyuan and Xiaonanshan have no undisclosed or contingent liabilities                and                no outstanding loans; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | All                tax liabilities incurred by the Sellers and Sudan as at the date                of                completion of the relevant Transaction have been paid in full or                accrued                sufficiently in their accounts; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Any                resource tax and resource compensation incurred in connection with                the                Licences and operation of the Mine Sites ha been fully paid as at                the date                of completion of the relevant Transaction or accrued sufficiently                in their                accounts; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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|   | (n) | The                Sellers have good titled to all land used in connection with the                operation                of the Mine Sites or have obtained the consent of any landlord to                the                assignment of any leased premises; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (p) | All                environmental liabilities incurred by the Sellers and Sudan have                been paid                in full or, where applicable, accrued sufficiently in their                accounts; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | All                salaries, social security payments and any other employee benefits                of                Sudan, Zhaoyuan and Xiaonanshan employees have been paid in full                or                accrued sufficiently in their                accounts; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (t) | Sellers                have not given any guarantees to any Seller 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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**10 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 Sellers                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; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | breach                of any warranties provided in the Definitive Documents;                and |
|--------|-----|--------------------------------------------------------------------------------------------------|

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|   | (i) | 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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**11 Management      Services Contract**

**“MSC”**
**“Consultant”**

|   | (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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**12 Non-competition**

**12.1**
**Non-competition**

|   | (a) | Following                execution of this Equity and Asset Transfer Heads of Agreement for                a                period of five (5) years following completion of the Transactions,                the                Sellers 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 12.1(a), the Sellers may 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 these Transactions and hold                their                investment in Yun County Changjiang Mining Company Limited                [  ] |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**12.2**
**Right      of First Refusal**

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**13 Time      Schedule**

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

**14.1**
**Language**

**14.2**
**Governing      Law**

**14.3**
**Dispute      Resolution**

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**15 General**

**15.1**
**General      Warranties**

|   | (a) | it                has full legal right, power and authority to enter into this Equity                and                Assets 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 and Assets 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. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

**15.2**
**Successors      and assignment**

**15.3**
**No      partnership or agency**

**15.4**
**Entire      agreement**

**15.5**
**Variation      and waiver**

**15.6**
**Copies**

**15.7**
**Foreign      Exchange**

**15.8**
**Partial      invalidity**

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**15.9**
**Amendment**

**15.10**
**Binding      effect**

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| **EXECUTED** by **CHINA GLOBAL    **                  |    )       |              |                                                                                 |
|------------------------------------------------------------------------------------------|---------------------------|-------------------|--------------------------------------------------------------------------------------|
| **MINING RESOURCES LIMITED    **                           |    )       |              |                                                                                 |
| by its authorised director:                           |    )       |              |                                                                                 |
|                                                                                     |    )  | [AFFIX CHOP] |
|                                                                                     |    )       |              |                                                                                 |
|                                                                                     |    )  |              | 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/                                                                |
| Witness Signature                                                                   |    )       |              | Signature                                                                            |
|                                                                                     |    )       |              |                                                                                 |
|                                                                                     |    )       |              |                                                                                 |
| *    *SK Bates                                                  |    )  |              |                                                                                 |
| Print Name                                                                          |    )       |              | Print Name                                                                      |
|                                                                                     |    )       |              |                                                                                 |
|                                                                                     |    )       |              |                                                                                 |
|                                                                                     |    )       |              |                                                                                 |
|                                                                                     |                      |              |                                                                                 |
| **SIGNED** by **LU NAN [  ]**                              |    )       |              |                                                                                 |
|                                                                                     |    )       |              |                                                                                 |
|                                                                                     |    )       |              |                                                                                 |
|                                                                                     |    )  |              |    /s/                                                                |
| Witness Signature                                                                   |    )       |              | Signature                                                                            |
|                                                                                     |    )       |              |                                                                                 |
|                                                                                     |    )       |              |                                                                                 |
|                                                                                     |    )  |              |                                                                                 |
| Print Name                                                                          |    )       |              | Print Name                                                                      |

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| **SIGNED** by **NANJING SUDAN**                      |                   ) |              |
|---------------------------------------------------------------------|-------------------------------|-------------------|
| **MINING CO., LTD [  ]**                   |                   ) |              |
| by its Legal Representative:                         |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) | [AFFIX CHOP] |
| /s/                                                                 |                   ) |              |
| Signature of Legal Representative                    |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) |              |
| Name of Legal Representative (block             |                   ) |              |
| Letters) Print                                                 |                   ) |              |
|                                                                |                          |              |
| **SIGNED** by **MAANSHAN**                                |                   ) |              |
| **ZHAOYUAN MINING CO., LTD **                   |                   ) |              |
| [  ] by its Legal Representative:     |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) | [AFFIX CHOP] |
| /s/                                                                 |                   ) |              |
| Signature of Legal Representative                    |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) |              |
| Name of Legal Representative (block             |                   ) |              |
| Letters) Print                                                 |                   ) |              |
|                                                                |                          |              |
| **SIGNED** by **XIAONANSHAN **                       |                   ) |              |
| **MINING CO., LTD [  ] **             |                   ) |              |
| by its Legal Representative:                         |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) | [AFFIX CHOP] |
| /s/                                                                 |                   ) |              |
| Signature of Legal Representative                    |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) |              |
|                                                                |                   ) |              |
| Name of Legal Representative (block   |                   ) |              |
| Letters) Print                                                 |                   ) |              |

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**SCHEDULE 1**

**Licences**

**Mining Licences**

| **Number**                            |   | 3400000420105                                                                                                                                    |   | 3400000620001                                                                                                                                                                                                                                                                                       |
|---------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                  |   |                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                |
| **Licences                owner**     |   | Maanshan,                Zhaoyuan Mining Company Limited                                                                                         |   | Maanshan,                Xiaonanshan Mining Company Limited                                                                                                                                                                                                                                         |
|                                  |   |                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                |
| **Address**                           |   | Maanshan                City, Jiashan Town, Matang Village                                                                                       |   | Maanshan                City, Xiaonanshan                                                                                                                                                                                                                                                           |
|                                  |   |                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                |
| **Name                of mine**       |   | Maanshan                City, Zhaoyuan Mining Company Limited, Matang iron ore                mine                                               |   | Maanshan                City, Xiaonanshan Mining Company Limited, Xiaonanshan Iron ore                mine                                                                                                                                                                                          |
|                                  |   |                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                |
| **Type                of mine**       |   | Iron                ore mine                                                                                                                     |   | Iron                ore mine                                                                                                                                                                                                                                                                        |
|                                  |   |                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                |
| **Type                of operations** |   | Open                cut operations                                                                                                               |   | Open                cut operations                                                                                                                                                                                                                                                                  |
|                                  |   |                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                |
| **Size                of operations** |   | 500,000                tonnes per year                                                                                                           |   | 100,000                tonnes per year                                                                                                                                                                                                                                                              |
|                                  |   |                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                |
| **Area**                              |   | 0.7886                square kilometres                                                                                                          |   | 0.1379                square kilometres                                                                                                                                                                                                                                                             |
|                                  |   |                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                |
| **Depth**                             |   | 45                to -50 metres deep                                                                                                             |   | 85                to 5 metres deep                                                                                                                                                                                                                                                                  |
|                                  |   |                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                |
| **Validity**                          |   | May                2004 to May 2021                                                                                                              |   | January                2006 to January 2009                                                                                                                                                                                                                                                         |
|                                  |   |                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                |
| **Reference                numbers**  |   | 1,3503084.00,40363236.002,3503074.00,40364027.003,3503998.00,40364039.004,3504008.00,40363249.005,3503660.00,40363162.006,3503333.00,40363034.00 |   | 1,3506130.00,40368260.002,3506216.00,40368310.003,3506347.00,40368417.004,3506335.00,40368575.005,3506234.00,40368553.006,3506183.00,40368587.007,3506093.00,40368610.008,3506032.00,40368599.009,3505883.00,40368537.0010,3505882.00,40368342.0011,3505894.00,40368272.0012,3506045.00,40368191.00 |

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