| Contents                                                                                                                 |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                     |   |
|                                                                                                                     | Page   |
|                                                                                                                     |   |
| Pro      Forma Combined Financial Statements:                                                                            |   |
|                                                                                                                     |   |
| Pro      Forma Combined Balance Sheet         as of December 31, 2007 (unaudited)                         | F-2    |
|                                                                                                                     |   |
| Pro      Forma Combined Statements of Operations         for      the Year Ended December 31, 2007 (unaudited) | F-3    |
|                                                                                                                     |   |
| Pro      Forma Combined Statements of Operations         for      the Year Ended December 31, 2006 (unaudited) | F-4    |
|                                                                                                                     |   |
| Notes      to Pro Forma Combined Financial Statements (unaudited)                                                        | F-5    |

----

| SONGZAI      INTERNATIONAL HOLDING GROUP INC. AND SUBSIDIARY AND |
|------------------------------------------------------------------|
| HEILONGJIANG      XINGAN GROUP HONGYUAN COAL MINE CO., LTD. AND  |
| HEILONGJIANG      XINGAN GROUP SHENGYU MINING CO., LTD.          |
| Pro      forma Combined Balance Sheet                            |
| As      of December 31, 2007                                     |
| (unaudited)                                                      |
|                                                             |

|                                            |   |             |       |   | Hongyuan      and |   |       | Pro      forma |   |   |       |   |   | Pro      forma |            |
|-------------------------------------------------|--------|------------------|------------|--------|-------------------|--------|------------|----------------|--------|--------|------------|--------|--------|----------------|-----------------|
|                                            |   | Songzai      (1) |       |   | Shengyu      (2)  |   |       | Adjustments    |   |   |       |   |   | Combined       |            |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |
| ASSETS                                          |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |
| CURRENT      ASSETS                             |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |
| Cash      and cash equivalents                  |   | $                | 4,494,978  |   |              | $      | 9,327,227  |           |   | $      |       |   |   |           |            |   |   | $ | 13,822,205 |   |
| Restricted      cash                            |   |             | 62,062     |   |              |   | -          |           |   |   |       |   |   |           |            |   |   | 62,062 |   |
| Accounts      receivable, net                   |   |             | -          |   |              |   | 3,509,445  |           |   |   |       |   |   |           |            |   |   | 3,509,445 |   |
| Advance      to suppliers                       |   |             | 185,771    |   |              |   | -          |           |   |   |       |   |   |           |            |   |   | 185,771 |   |
| Other      receivables                          |   |             | 179,620    |   |              |   | -          |           |   |   |       |   |   |           |            |   |   | 179,620 |   |
| Prepaid      mining right                       |   |             | 164,505    |   |              |   | 405,780    |           |   |   |       |   |   |           |            |   |   | 570,285 |   |
| Inventory                                       |   |             | 366,514    |   |              |   | 502,984    |           |   |   |       |   |   |           |            |   |   | 869,498 |   |
| Advance      to related party                   |   |             | -          |   |              |   | 753,982    |           |   |   |       |   |   |           |            |   |   | 753,982 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |
| TOTAL      CURRENT ASSETS                       |   |             | 5,453,450  |   |              |   | 14,499,418 |           |   |   | -          |   |   |           |            |   |   |   | 19,952,868 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| PROPERTY      AND EQUIPMENT, net                |   |             | 5,904,310  |   |              |   | 7,671,122  |           |   |   | (1,806,788 | )      |   |           | c               |   |   |   | 11,768,644 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| CONSTRUCTION      IN PROGRESS                   |   |             | 157,651    |   |              |   | -          |           |   |   | (48,243    | )      |   |           | c               |   |   |   | 109,408 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| NONCURRENT      ASSETS                          |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| Prepaid      mining right                       |   |             | 1,380,017  |   |              |   | 9,097,484  |           |   |   | (422,301   | )      |   |           | c               |   |   |   | 10,055,200 |   |
| Asset      retirement cost, net                 |   |             | -          |   |              |   | 2,901,600  |           |   |   |       |   |   |           |            |   |   |   | 2,901,600 |   |
| Deferred      tax asset                         |   |             | -          |   |              |   | -          |           |   |   | 1,121,670  |   |   |           | e               |   |   |   | 1,121,670 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| TOTAL      NONCURRENT ASSETS                    |   |             | 1,380,017  |   |              |   | 11,999,084 |           |   |   | 699,369    |   |   |           |            |   |   |   | 14,078,470 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| TOTAL      ASSETS                               |   | $                | 12,895,428 |   |              | $      | 34,169,624 |           |   | $      | (1,155,662 | )      |   |           |            |   |   | $ | 45,909,390 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY       |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| CURRENT      LIABILITIES                        |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| Accounts      payable                           |   | $                | 270,385    |   |              | $      | -          |           |   | $      |       |   |   |           |            |   |   | $ | 270,385 |   |
| Unearned      revenue                           |   |             | 308,388    |   |              |   | -          |           |   |   |       |   |   |           |            |   |   |   | 308,388 |   |
| Dividend      payable                           |   |             | -          |   |              |   | -          |           |   |   |       |   |   |           |            |   |   |   | - |   |
| Other      payable and accrued liabilities      |   |             | 514,919    |   |              |   | 225,348    |           |   |   |       |   |   |           |            |   |   |   | 740,267 |   |
| Taxes      Payable                              |   |             | 190,726    |   |              |   | 7,253,019  |           |   |   |       |   |   |           |            |   |   |   | 7,443,745 |   |
| Due      to stockholder                         |   |             | 636,465    |   |              |   | -          |           |   |   |       |   |   |           |            |   |   |   | 636,465 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| TOTAL      CURRENT LIABILITIES                  |   |             | 1,920,883  |   |              |   | 7,478,367  |           |   |   | -          |   |   |           |            |   |   |   | 9,399,250 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| NONCURRENT      LIABILITIES                     |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| Asset      retirement obligation                |   |             | -          |   |              |   | 3,577,759  |           |   |   |       |   |   |           |            |   |   |   | 3,577,759 |   |
| Deferred      tax liability                     |   |             | 128,922    |   |              |   | 744,956    |           |   |   |       |   |   |           |            |   |   |   | 873,878 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| TOTAL      NONCURRENT LIABILITIES               |   |             | 128,922    |   |              |   | 4,322,715  |           |   |   |       |   |   |           |            |   |   |   | 4,451,637 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| TOTAL      LIABILITIES                          |   |             | 2,049,805  |   |              |   | 11,801,082 |           |   |   |       |   |   |           |            |   |   |   | 13,850,887 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY                       |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   | - |   |
| Common      Stock                               |   |             | 6,932      |   |              |   | -          |           |   |   | 8,000      |   |   |           | a               |   |   |   | 14,932 |   |
| Preferred      stock                            |   |             | 400        |   |              |   | -          |           |   |   |       |   |   |           | f          |   |   |   | 400 |   |
| Additional      paid in capital                 |   |             | 4,665,349  |   |              |   | 1,329,062  |           |   |   | 5,009,280  |   |   |           | b,      c, d, e |   |   |   | 11,003,691 |   |
| Other      comprehensive income                 |   |             | 943,935    |   |              |   | 1,405,103  |           |   |   | (943,935   | )      |   |           | b               |   |   |   | 1,405,103 |   |
| Statutory      reserve                          |   |             | 1,794,559  |   |              |   | 2,943,658  |           |   |   | (1,794,559 | )      |   |           | b               |   |   |   | 2,943,658 |   |
| Retained      earnings                          |   |             | 3,434,448  |   |              |   | 16,690,719 |           |   |   | (3,434,448 | )      |   |           | b               |   |   |   | 16,690,719 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| TOTAL      STOCKHOLDERS' EQUITY                 |   |             | 10,845,623 |   |              |   | 22,368,542 |           |   |   | (1,155,662 | )      |   |           |            |   |   |   | 32,058,503 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY |   | $                | 12,895,428 |   |              | $      | 34,169,624 |           |   | $      | (1,155,662 | )      |   |           |            |   |   | $ | 45,909,390 |   |
|                                            |   |             |       |   |              |   |       |           |   |   |       |   |   |           |            |   |   |   |   |   |
|                                            |   |             | 0          |   |              |   | -          |           |   |   | -          |   |   |           |            |   |   |   | 0 |   |

| (1)      Source:  audited financial statements of  Songzai      International Holding Group Inc. and Subsidiaries as of December 31, 2007      as included in this form 10KSB.                                                       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)      Source:  audited combined financial statements of Heilongjiang      Xingan Group Hongyuan Coal Mine Co., Ltd. and Heilongjiang Xingan Group      Shengyu Mining Co., Ltd. as      of December 31, 2007 included in this form  10-KSB. |
| a                                                                                                                                                                                                                                                        | Issuance      of 8,000,000 shares (after 10:1 reverse stock split) to the shareholder of      Hongyuan and Shengyu. |
| b                                                                                                                                                                                                                                                        | Elimination      of capital accounts, other comprehensive income, statutory reserve and      retained earnings of Songzai as a result of    recapitalization. |
| c                                                                                                                                                                                                                                                        | Allocation      of the net purchase price to the assets acquired and liabilities assumed.      The negative goodwill is being allocated to fixed assets and prepaid      mining right proportionally. |
| d                                                                                                                                                                                                                                                        | Net      purchase price of $8,568,291 paid by accounting      acquirer (Hongyuan and Shengyu) represents the fair value of the legal      acquirer's (Songzai) 6,932,374 outstanding |
|                                                                                                                                                                                                                                                     | common      shares (after 10:1 reverse stock split) and 400,000 convertible preferred      shares (1 common for 1 preferred) of $38,568,291 |
|                                                                                                                                                                                                                                                     | less      the cash consideration of $30,000,000 receivable from    Songzai. |
| e                                                                                                                                                                                                                                                        | Deferred      tax asset resulting from tax and book basis difference in noncurrent      assets resulting from allocation of negative goodwill. |
| f                                                                                                                                                                                                                                                        | Outstanding      of 400,000 Series A preferred stock (1 commons for 1 preferred) at par      value of 0.001, with no privilege of claiming and receiving      dividends. |

----

| SONGZAI      INTERNATIONAL HOLDING GROUP INC. AND SUBSIDIARY AND |   |   |   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|
| HEILONGJIANG      XINGAN GROUP HONGYUAN COAL MINE CO., LTD. AND  |   |   |   |   |
| HEILONGJIANG      XINGAN GROUP SHENGYU MINING CO., LTD.          |   |   |   |   |
| Pro      forma Combined Statement of Operations                  |   |   |   |   |
| For      the Year Ended December 31, 2007                        |   |   |   |   |
| (unaudited)                                                      |   |   |   |   |

|                                                                 |   |             |       |   | Hongyuan      and |   |       | Pro      forma |   |   | Pro      forma |   |
|----------------------------------------------------------------------|--------|------------------|------------|--------|-------------------|--------|------------|----------------|--------|--------|----------------|--------|
|                                                                 |   | Songzai      (1) |       |   | Shengyu      (2)  |   |       | Adjustments    |   |   | Combined       |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |
| Net      Revenue                                                     |   | $                | 12,351,166 |   |              | $      | 34,580,611 |           |   | $      | -              |   |   | $ | 46,931,777 |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Cost      of Revenue                                                 |   |             | 5,586,468  |   |              |   | 12,964,485 |           |   |   | -              |   |   |   | 18,550,953 |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Gross      Profit (Loss)                                             |   |             | 6,764,698  |   |              |   | 21,616,126 |           |   |   | -              |   |   |   | 28,380,824 |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Operating      expenses:                                             |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Selling      expenses                                                |   |             | -          |   |              |   | 750,026    |           |   |   | -              |   |   |   | 750,026 |   |
| General      and administrative expenses                             |   |             | 1,808,966  |   |              |   | 639,865    |           |   |   | (273,099       | )      | a |   | 2,175,732 |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Total      operating expenses                                        |   |             | 1,808,966  |   |              |   | 1,389,891  |           |   |   | (273,099       | )      |   |   | 2,925,758 |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Income      from operations                                          |   |             | 4,955,732  |   |              |   | 20,226,235 |           |   |   | 273,099        |   |   |   | 25,455,066 |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Non-operating      income (expense):                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Other      income (expense)                                          |   |             | (23,791    | )      |              |   | -          |           |   |   | -              |   |   |   | (23,791 | ) |
| Interest      income                                                 |   |             | 1,730      |   |              |   | 2,118      |           |   |   | -              |   |   |   | 3,848 |   |
| Interest      expense                                                |   |             | (27,017    | )      |              |   | (134,511   | )              |   |   | -              |   |   |   | (161,528 | ) |
| Financial      expense                                               |   |             | (345       | )      |              |   | (203       | )              |   |   |           |   |   |   |   |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Total      non-operating income (expense)                            |   |             | (49,423    | )      |              |   | (132,596   | )              |   |   | -              |   |   |   | (181,471 | ) |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Income      before income tax                                        |   |             | 4,906,309  |   |              |   | 20,093,639 |           |   |   | 273,099        |   |   |   | 25,273,595 |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Income      tax expense                                              |   |             | (818,438   | )      |              |   | (6,631,364 | )              |   |   | (45,557        | )      | a |   | (7,495,359 | ) |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Net      income                                                      |   |             | 4,087,871  |   |              |   | 13,462,275 |           |   |   | 227,543        |   |   |   | 17,778,237 |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Other      comprehensive income                                      |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Foreign      currency translation gain                               |   |             | 649,641    |   |              |   | 1,118,284  |           |   |   |           |   |   |   | 1,767,925 |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Comprehensive      income                                            |   | $                | 4,737,512  |   |              | $      | 14,580,559 |           |   |   | 227,543        |   |   | $ | 19,546,162 |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Net      income per common share                                     |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Basic                                                                |   | $                | 0.59       |   |              | $      | 1.68       |           |   |   |           |   |   | $ | 1.19 |   |
| Diluted                                                              |   | $                | 0.56       |   |              | $      | 1.68       |           |   |   |           |   |   | $ | 1.16 |   |
|                                                                 |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Weighted      average number of shares outstanding during the period |   |             |       |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Basic                                                                |   |             | 6,932,375  |   |              |   | 8,000,000  |           |   |   |           |   |   |   | 14,923,375 |   |
| Diluted                                                              |   |             | 7,332,375  |   |              |   | 8,000,000  |           |   |   |           |   |   |   | 15,332,375 |   |

| (1)      Source:  audited      financial statements of Songzai International Holding Group Inc. and      Subsidiaries for the year ended December 31, 2007 included      in this form 10-KSB.                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)      Source:  audited      combined financial statements of Heilongjiang Xingan Group Hongyuan Coal      Mine Co., Ltd. and Heilongjiang Xingan Group Shengyu Mining Co., Ltd.      for      the year ended December 31, 2007 included in this form      10-KSB. |
| a            Adjustments      of depreciation and amortization expenses and related income tax effect as      a result of negative goodwill allocation to noncurrent    assets.                                                                                                |

----

| SONGZAI      INTERNATIONAL HOLDING GROUP INC. AND SUBSIDIARY AND |   |
|------------------------------------------------------------------|--------|
| HEILONGJIANG      XINGAN GROUP HONGYUAN COAL MINE CO., LTD. AND  |   |
| HEILONGJIANG      XINGAN GROUP SHENGYU MINING CO., LTD.          |   |
| Pro      forma Combined Statement of Operations                  |   |
| For      the Year Ended December 31, 2006                        |   |
| (unaudited)                                                      |   |

|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |
|----------------------------------------------------------------------|--------|------------------|-----------|--------|-------------------|--------|------------|----------------|--------|--------|----------------|--------|
|                                                                 |   | Restated         |      |   | Hongyuan      and |   |       | Pro      forma |   |   | Pro      forma |   |
|                                                                 |   | Songzai      (1) |      |   | Shengyu      (2)  |   |       | Adjustments    |   |   | Combined       |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |
| Net      Revenue                                                     |   | $                | 3,835,427 |   |              | $      | 21,316,745 |           |   | $      | -              |   |   | $ | 25,152,172 |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Cost      of Revenue                                                 |   |             | 2,402,459 |   |              |   | 9,455,308  |           |   |   | -              |   |   |   | 11,857,767 |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Gross      Profit                                                    |   |             | 1,432,968 |   |              |   | 11,861,437 |           |   |   | -              |   |   |   | 13,294,405 |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Operating      expenses:                                             |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Selling      expenses                                                |   |             | 13,311    |   |              |   | 331,105    |           |   |   | -              |   |   |   | 344,416 |   |
| General      and administrative expenses                             |   |             | 697,338   |   |              |   | 527,503    |           |   |   | (181,712       | )      | a |   | 1,043,129 |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Total      operating expenses                                        |   |             | 710,649   |   |              |   | 858,608    |           |   |   | (181,712       | )      |   |   | 1,387,545 |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Income      from operations                                          |   |             | 722,319   |   |              |   | 11,002,829 |           |   |   | 181,712        |   |   |   | 11,906,860 |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Non-operating      income (expense):                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Other      income (expense)                                          |   |             | 463       |   |              |   | (544       | )              |   |   | -              |   |   |   | (81 | ) |
| Interest      income                                                 |   |             | 211       |   |              |   | 2,273      |           |   |   | -              |   |   |   | 2,484 |   |
| Interest      expense                                                |   |             | (7,540    | )      |              |   | (123,298   | )              |   |   | -              |   |   |   | (130,838 | ) |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Total      non-operating income (expense)                            |   |             | (6,866    | )      |              |   | (121,569   | )              |   |   | -              |   |   |   | (128,435 | ) |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Income      before income tax                                        |   |             | 715,453   |   |              |   | 10,881,260 |           |   |   | 181,712        |   |   |   | 11,778,425 |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Income      tax expense                                              |   |             | (10,197   | )      |              |   | (3,590,816 | )              |   |   | -              |   |   |   | (3,601,013 | ) |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Net      income                                                      |   |             | 705,256   |   |              |   | 7,290,444  |           |   |   | 181,712        |   |   |   | 8,177,412 |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Other      comprehensive income                                      |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Foreign      currency translation gain                               |   |             | 306,221   |   |              |   | 237,757    |           |   |   |           |   |   |   | 543,978 |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Comprehensive      income                                            |   | $                | 1,011,477 |   |              | $      | 7,528,201  |           |   |   | 181,712        |   |   | $ | 8,721,390 |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Net      income per common share                                     |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Basic                                                                |   | $                | 0.09      |   |              | $      | 0.91       |           |   |   |           |   |   | $ | 0.54 |   |
| Diluted                                                              |   | $                | 0.09      |   |              | $      | 0.91       |           |   |   |           |   |   | $ | 0.53 |   |
|                                                                 |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Weighted      average number of shares outstanding during the period |   |             |      |   |              |   |       |           |   |   |           |   |   |   |   |   |
| Basic                                                                |   |             | 6,926,840 |   |              |   | 8,000,000  |           |   |   |           |   |   |   | 14,926,840 |   |
| Diluted                                                              |   |             | 7,326,840 |   |              |   | 8,000,000  |           |   |   |           |   |   |   | 15,326,840 |   |

| (1)   | Source:  audited financial statements of Songzai      International Holding Group Inc. and Subsidiaries for the year ended      December 31, 2006 as filed in Annual Report on Form 10-KSB filed      with the SEC on May 04, 2007.                         |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)             | Source:  audited      combined financial statements of Heilongjiang Xingan Group Hongyuan Coal      Mine Co., Ltd. and Heilongjiang Xingan Group Shengyu Mining Co.,      Ltd. for the year ended December 31, 2006 included in this      form 10-KSB. |
| a               | Adjustments      of depreciation and amortization expenses as a result of negative goodwill      allocation to noncurrentassets.                                                                                                                                      |

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| a.     | Recapitalization      of Hongyuan Shengyu to account for issuance of an      aggregate  80,000,000 common shares of Songzai to the      shareholders of Hongyuan Shengyu, the total issued and outstanding common      shares after the reverse merge were 149,323,748;                                                                 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                              |
| b.     | Elimination      of capital accounts, other comprehensive income, statutory reserve and      retained earnings of Songzai as a result of    recapitalization;                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                              |
| c.     | Allocation      of the net purchase price to the assets acquired and liabilities      assumed.  The negative goodwill is being allocated to fixed      assets and prepaid mining right proportionally;                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                              |
| d.     | Net      purchase price paid by accounting acquirer (Hongyuan Shengyu) represents      the fair value of the legal acquirer's (Songzai) 6,932,374 outstanding      common shares and 400,000 convertible preferred shares (1 common for 1      preferred) of $38,568,291 less the cash consideration of $30,000,000      receivable from Songzai; |
|   |                                                                                                                                                                                                                                                                                                                                              |
| e.     | Recording      of deferred tax assets as a result of basis differences arising from      allocation of negative goodwill to non-current assets;                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                              |
| f.     | Outstanding      of 400,000 Series A preferred stock (10 commons for 1 preferred) at par      value of 0.001, with no privilege of claiming and receiving      dividends.                                                                                                                                                                         |

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