EXHIBIT 10.4

                           2004 AUDITED FINANICALS OF
                             HIGHLAND MINING, INC.

<PAGE>


EXHIBIT 10.4





                              HIGHLAND MINING, INC.
                         (an exploration stage company)

                   INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

--------------------------------------------------------------------------------


Report of Independent Registered Public Accounting Firm.................   2

Consolidated Balance Sheet..............................................   3

Consolidated Statement of Operations....................................   4

Consolidated Statement of Changes in Stockholders' Equity...............   5

Consolidated Statement of Cash Flows....................................   6

Notes to the Consolidated Financial Statements..........................   7-13



                                       1

<PAGE>




             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Highland Mining, Inc.

We have audited the  consolidated  balance sheets of Highland  Mining,  Inc. (an
exploration stage company) as of October 31, 2004 and December 31, 2004, and the
related consolidated statements of operations,  changes in stockholders' equity,
and cash flows for the period from June 18, 2004  (inception of the  exploration
stage) to October 31, 2004, for the period from November 1, 2004 to December 31,
2004,  and the  cumulative  period from  inception of the  exploration  stage to
December  31,   2004.   These   consolidated   financial   statements   are  the
responsibility of the Company's management.  Our responsibility is to express an
opinion on the consolidated financial statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management  as well as  evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all  material  respects,  the  consolidated  financial  position  of
Highland  Mining,  Inc. at October  31,  2004 and  December  31,  2004,  and the
consolidated  results of its  operations  and its cash flows for the period from
inception  of the  exploration  stage to October 31,  2004,  for the period from
November 1, 2004 to December 31, 2004, and the cumulative  period from inception
of the  exploration  stage to December 31, 2004, in conformity  with  accounting
principles generally accepted in the United States of America.

As discussed in Note 1 to the consolidated financial statements, the Company has
been in the exploration  stage since its inception on June 18, 2004, has limited
operations  and has  sustained  substantial  operating  losses  resulting  in an
accumulated  deficit.  Unless the Company attains future  profitable  operations
and/or  obtains  additional  financing,  there is  substantial  doubt  about the
Company's ability to continue as a going concern.  Management's plans in regards
to these matters are discussed in Note 1. The consolidated  financial statements
do not  include  any  adjustments  that might  result  from the  outcome of this
uncertainty.

Clancy and Co., P.L.L.C.
Phoenix, Arizona

October 5, 2005


                                       2

<PAGE>

<TABLE>
<CAPTION>



                                      HIGHLAND MINING, INC.
                                 (an exploration stage company)
                                   CONSOLIDATED BALANCE SHEETS

Stated in U.S. dollars                                                     December 31, 2004       October 31, 2004
-------------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>                   <C>
ASSETS

Current Assets
   Cash and cash equivalents                                                  $      93,140         $     108,875
   Prepaid expenses                                                                   1,161                    52
------------------------------------------------------------------------------------------------------------------
Total Current Assets                                                                 94,301               108,927

Due from related party (Note 4)                                                      39,986                51,663

Mineral property (Note 3)                                                         1,564,797             1,565,185

------------------------------------------------------------------------------------------------------------------

        Total Assets                                                             $1,699,084        $    1,725,775
==================================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
   Accounts payable and accrued expenses                                            $21,060         $      11,083
   Promissory note payable - related party (Note 4)                                       -               642,474
   Due to related parties (Note 4)                                                  556,304               421,611
------------------------------------------------------------------------------------------------------------------
Total current liabilities                                                           577,364             1,075,168
------------------------------------------------------------------------------------------------------------------

Commitments and contingencies (Note 6)                                                    -                     -

Stockholders' Equity
   Common stock : $1.00 par value, authorized: 1,000,000
       Issued and outstanding: 1,000,000                                          1,000,000             1,000,000
   Additional paid-in capital                                                       642,474                     -
   Accumulated other comprehensive loss                                             (2,676)               (2,279)
   Accumulated deficit during the exploration stage                               (518,078)             (347,114)
------------------------------------------------------------------------------------------------------------------
Total Stockholders' Equity                                                        1,121,720               650,607

------------------------------------------------------------------------------------------------------------------

Total Liabilities and Stockholders' Equity                                       $1,699,084            $1,725,775
==================================================================================================================

</TABLE>



   The accompanying notes are an integral part of these financial statements.

                                       3

<PAGE>

<TABLE>
<CAPTION>


                                      HIGHLAND MINING, INC.
                                 (an exploration stage company)
                              CONSOLIDAED STATEMENTS OF OPERATIONS

                                                             Cumulative amounts
                                                             from inception of     For the period from     For the period from
                                                              the exploration      November 1, 2004 to          inception
Stated in U.S. dollars                                             stage            December 31, 2004      to October 31, 2004
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>                           <C>                        <C>
Expenses

   Consulting and professional                             $              20,962                   10,000                  10,962
   Exploration expenses (Note 3)                                         326,128                  121,650                 204,478
   Foreign exchange loss                                                  28,421                    9,613                  18,808
   General and administrative                                             28,772                    1,292                  27,480
   Salaries, wages and benefits                                           45,463                   16,757                  28,706
   Travel expenses                                                        72,751                   12,137                  60,614
----------------------------------------------------------------------------------------------------------------------------------
   Total expenses                                                        522,497                (171,449)                 351,048

Operating loss                                                         (522,497)                (171,449)               (351,048)

Other income - interest income                                             4,419                      485                   3,934

----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Net loss                                                   $           (518,078)                (170,964)               (347,114)
==================================================================================================================================

Basic and diluted loss per share                           $              (0.56)                   (0.17)                  (0.39)
                                                            ======================================================================

Basic and diluted weighted average shares outstanding      $             928,934                1,000,000                 897,059
                                                            ======================================================================

</TABLE>










   The accompanying notes are an integral part of these financial statements.

                                       4


<PAGE>


<TABLE>
<CAPTION>

                                                           HIGHLAND MINING, INC.
                                                       (an exploration stage company)
                                              CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                   FOR THE PERIOD FROM JUNE 18, 2004 (INCEPTION OF THE EXPLORATION STAGE)
                                                            TO DECEMBER 31, 2004

                                                          Common      Additional                    Accumulated
                                            Common       Stock at      Paid-In      Accumulated        Other
Stated in U.S. dollars                      Shares      Par Value      Capital        Deficit       Comp. Loss          Total
------------------------------------------------------------------------------------------------------------------------------------
<S>                                          <C>          <C>            <C>          <C>              <C>            <C>
Balance, June 18, 2004 (inception)                   -       $     -        $    -       $      -         $      -        $       -

Common stock issued for cash at $1.00
    per share on July 2, 2004                1,000,000     1,000,000             -              -                -        1,000,000

Net loss, inception to October 31, 2004              -             -             -      (347,114)          (2,279)        (349,393)
------------------------------------------------------------------------------------------------------------------------------------
Balance - October 31, 2004                   1,000,000     1,000,000             -      (347,114)          (2,279)          650,607

Cancellation of promissory note on
     November                                        -             -       642,474                               -          642,474

Net loss, two months period ended
    December 31, 2004                                                                   (170,964)            (397)        (171,361)
------------------------------------------------------------------------------------------------------------------------------------
Balance - December 31, 2004                  1,000,000    $1,000,000     $ 642,474    $ (518,078)      $   (2,676)     $  1,121,720
====================================================================================================================================
</TABLE>












   The accompanying notes are an integral part of these financial statements.

                                       5

<PAGE>


<TABLE>
<CAPTION>

                                                    HIGHLAND MINING, INC.
                                               (an exploration stage company)
                                            CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                  Cumulative amounts
                                                                  from inception of  For the period from    For the period
                                                                   the exploration   November 1, 2004 to   from inception to
Stated in U.S. dollars                                                  stage         December 31, 2004    October 31, 2004
------------------------------------------------------------------------------------------------------------------------------
<S>                                                                     <C>                <C>                  <C>
Cash flows from operating activities
  Net loss                                                              $   (518,078)      $    (170,964)       $   (347,114)
  Adjustments to reconcile net loss to net cash
       provided by (used in) operating activities
  Translation adjustments                                                     (2,676)               (397)             (2,279)
  Cancellation of promissory note                                             642,474                   -                   -
  Changes in assets and liabilities:
      Increase in prepaid expenses                                            (1,161)             (1,109)                (52)
      Increase in accounts payable and accrued expenses                        21,060               9,977              11,083
------------------------------------------------------------------------------------------------------------------------------
  Net cash flows used in operating activities                                 141,619           (162,493)           (338,362)
------------------------------------------------------------------------------------------------------------------------------

Cash flows from investing activities
    Investment in mineral properties                                      (1,564,797)                 388(        (1,565,185)
------------------------------------------------------------------------------------------------------------------------------
  Net cash flows used in investing activities                             (1,564,797)                 388         (1,565,185)
------------------------------------------------------------------------------------------------------------------------------

Cash flows from financing activities
    Advances - amounts to related parties                                     556,304             134,693             421,611
    Due from related party - Honglu                                          (39,986)              11,677            (51,663)
    Proceeds from the issuance of promissory notes                                  -                   -             642,474
    Proceeds from the issuance of common stock                              1,000,000                   -           1,000,000
------------------------------------------------------------------------------------------------------------------------------
  Net cash flows provided by financing activities                           1,516,318             146,370           2,012,422
------------------------------------------------------------------------------------------------------------------------------

Increase (decrease) in cash and cash equivalents                               93,140            (15,735)             108,875
Cash and cash equivalents - beginning of period                                     -             108,875-                  -
                                                                 -------------------------------------------------------------
Cash and cash equivalents - end of period                                $     94,140              93,140        $    108,875
                                                                 =============================================================

Supplemental information
   Cash paid for interest and income taxes                                          -                   -                   -
                                                                 =============================================================

Non-cash investing and financing activities:
   Cancellation of promissory note                                       $    642,474        $    642,474                   -
                                                                 =============================================================
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       6


<PAGE>



HIGHLAND MINING INC.
(an exploration stage company)
Notes to the Consolidated Financial Statements
December 31, 2004 and October 31, 2004
(Stated in U.S. Dollars)

--------------------------------------------------------------------------------

1. Nature of Business and Going Concern

Highland  Mining Inc. (the  "Company")  was duly  incorporated  on June 18, 2004
under the laws of the British Virgin Islands ("BVI") with an authorized  capital
of 1,000,000 shares at a par value of $1 each. Its principal  business  activity
is the exploration of mineral properties located in Tibet,  People's Republic of
China ("China")  through its wholly-owned  subsidiary,  Tibet Tian Yuan Minerals
Exploration  Ltd. ("Tian Yuan"),  which was  incorporated on April 7, 2004 under
the laws of Tibet,  China. Tian Yuan received  permission to operate as a wholly
owned  foreign  enterprise  ("WOFE")  on August 20,  2004 and  commenced  active
business on that date.

The  accompanying  financial  statements  have been prepared in conformity  with
generally accepted accounting principles in the United States, which contemplate
continuation of the Company as a going concern. However, the Company has limited
operations and has sustained  substantial  operating losses since inception.  In
view of these  matters,  realization  of a major  portion  of the  assets in the
accompanying  balance sheets is dependent  upon the continued  operations of the
Company,  which in turn is  dependent  upon the  Company's  ability  to meet its
financing requirements and the success of its future operations.

The  Company's  efforts  have  been  concentrated  in  expenditures  related  to
exploration of mineral  properties.  The Company has not determined  whether the
properties contain ore reserves that are economically recoverable.  The ultimate
realization  of the  Company's  exploration  activities  is  dependent  upon the
success of future sales, the existence of economically recoverable reserves, the
ability  of the  Company to obtain  financing  or make  other  arrangements  for
exploration,  and upon future profitable production,  which cannot be determined
at this  time.  Accordingly,  no  provision  for any asset  impairment  that may
result,  in  the  event  the  Company  is  not  successful  in  its  exploration
activities, has been made in the accompanying financial statements.

To meet these  objectives,  the founding  shareholders  of the Company signed an
Option Agreement with Continental Minerals Corporation ("KMK"), a company listed
on the Toronto  Venture  Exchange under the trading symbol "KMK" and China NetTV
Holding Inc.  ("CTVH"),  a company  listed on the Nasdaq OTCBB under the trading
symbol "CTVH" in November 2004 to induce funds into the Company for  exploration
purposes. (See Note 4 for details)

Management  believes  its  concessions  can  ultimately  be sold or developed to
enable the Company to  continue  its  operations.  However,  there are  inherent
uncertainties in mining operations and management cannot provide assurances that
it will be  successful  in this  endeavor.  Furthermore,  the  Company is in the
exploration  stage,  as it has  not  realized  any  revenues  from  its  planned
operations.

2. Summary of Significant Accounting Policies

Principles of Consolidation - The consolidated  financial statements include the
accounts of the Company and its wholly owned  subsidiary,  after  elimination of
intercompany  accounts and  transactions.  The  wholly-owned  subsidiary  of the
Company is listed in Note 1.

                                       7

<PAGE>

Accounting  method - The  financial  statements  are prepared  under the accrual
method of accounting.

Use of estimates - The  preparation of financial  statements in conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions  that affect the reported  amounts of assets and liabilities and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.

Concentration of Credit Risk - The Company's mineral exploration  activities are
located in Tibet and its  inability  to locate a  commercially  minable  reserve
would have a significant, financially disruptive effect on the operations of the
Company.

Cash and cash  equivalents  - The  Company  considers  all  highly  liquid  debt
instruments  with  original  maturities  of  three  months  or  less  to be cash
equivalents. The balances at October 31, 2004 and December 31, 2004 consisted of
cash only.

Revenue  Recognition  Policy - The Company  recognizes  revenue  when there is a
mutually  executed  contract,  the  contract  price is fixed  and  determinable,
delivery of the product has occurred,  and  collectibility of the contract price
is considered probable. There have been no recognized revenues since inception.

Impairment or Disposal of Long-lived Assets - The Company reports the impairment
of long-lived  assets and certain  identifiable  intangibles in accordance  with
Statement of Financial  Accounting  Standards ("SFAS") No. 144,  "Accounting for
the Impairment or Disposal of Long-lived Assets".  Certain long-lived assets and
identifiable  intangibles  held  by the  Company  are  reviewed  for  impairment
whenever assets or changes in  circumstances  indicate the carrying amount of an
asset may not be recoverable.  Accordingly,  an impairment loss is recognized in
the period it is determined. A component of an entity that is classified as held
for sale or that has been disposed of is presented as a  discontinued  operation
if the  operations  and cash  flows  of the  component  will be (or  have  been)
eliminated  from the  ongoing  operations  of the entity and the entity will not
have any significant continuing involvement in the operations of the component.

Exploration  Stage  Activities - The Company has been in the  exploration  stage
since  its  inception  and has no  revenues  from  operations.  The  Company  is
primarily engaged in the acquisition and exploration of mineral reserves. Should
the Company locate a commercially  minable reserve,  the Company would expect to
actively prepare the site for extraction.

Mineral property and exploration costs - Acquisition costs of mineral properties
are capitalized until the property is placed into production, sold, or abandoned
or  management  has  determined  that  there have been an  impairment  in value.
Mineral  properties  are  periodically  assessed for impairment of value and any
diminution in value is charged to operations at the time of impairment. Should a
property  be  abandoned,  its  unamortized  capitalized  costs  are  charged  to
operations.   The  Company  charges  to  operations  the  allocable  portion  of
capitalized  costs  attributable  to  properties  sold.  Capitalized  costs  are
allocated  to  properties  abandoned or sold based on the  proportion  of claims
abandoned or sold to the claims  remaining  within the project area. These costs
will be amortized on a  unit-of-production  basis over the estimated useful life
of the related properties  following the commencement of production,  or written
off if the property is sold,  allowed to lapse or  abandoned.  Mineral  property
acquisition  costs include the cash  consideration and the estimated fair market
value of common shares on the date of issue or as otherwise  provided  under the
agreed terms for the mineral property  interest.  Exploration  expenses incurred
prior to the  determination of the feasibility of mining operations and periodic
option  payments  are expensed as  incurred.  Revenues  from the sale of mineral
properties  which are sold before the property  reaches the production stage are
credited against the cost of the property. (See Note 3)

Advertising  costs - Advertising  costs are expensed as incurred.  There were no
advertising costs for the periods presented.

                                       8

<PAGE>

Research and development  costs - Research and development  costs are charged to
expense as incurred.

Income taxes - The Company  accounts for income  taxes under the  provisions  of
SFAS No. 109, "Accounting for Income Taxes." Under SFAS No. 109, deferred income
tax assets and liabilities  are computed for  differences  between the financial
statements and tax bases of assets and  liabilities  that will result in taxable
or  deductible  amounts  in the  future,  based on  enacted  tax laws and  rates
applicable  to the  periods  in which the  differences  are  expected  to affect
taxable income.  Provision for income taxes consists of taxes currently due plus
deferred  taxes.  There are no deferred  taxes or provision for income taxes for
any  of  the  periods  presented.  Valuation  allowances  are  established  when
necessary  to reduce  deferred  income tax assets to the amount  expected  to be
realized.

The  Company is not subject to any income tax as it is duly  organized  as a BVI
Company. The Company through its wholly-owned subsidiary, Tian Yuan, is governed
by the Income  Tax Law of the  People's  Republic  of China  ("PRC")  concerning
Foreign  Investment  Enterprises  ("FIEs") and Foreign  Enterprises  and various
local income tax laws (the "Income Tax Laws").

Under the Income Tax Laws,  FIEs  generally  are  subject to an income tax at an
effective  rate of 33% (30% state income  taxes plus 3% local  income  taxes) on
incomes reported in the statutory  financial  statements  after  appropriate tax
adjustments,  unless the enterprise is located in a specially  designated region
for which more favorable effective tax rates are applicable at a reduced rate of
15%.  Tian Yuan  operates as a WOFE in the PRC and is exempted from income taxes
in the first and  second  years and  allowed a fifty  percent  reduction  in the
standard  tax rates in the third to fifth  years.  The Company is not subject to
any local income tax of 3% until the exemption and reduction  periods  expire in
2009.  Ultimately,  for Chinese  income tax  purposes,  the tax  position of the
Company must be approved by the appropriate Chinese taxing authority.

Foreign currency  translations - Monetary assets and liabilities  denominated in
foreign  currencies are translated at the exchange rate in effect at the balance
sheet date and  non-monetary  assets and  liabilities  at the exchange  rates in
effect at the time of acquisition or issue. Revenues and expenses are translated
at the average  exchange rate in effect  during the period or at the  historical
rate for the related  non-monetary  asset or liability.  Realized and unrealized
foreign exchange gains and losses are included in earnings.

The  consolidated  financial  statements  are presented in U.S.  dollars and the
functional  currency of Tian Yuan is Chinese  Renminbi  ("RMB").  The assets and
liabilities of Tian Yuan are translated into U.S. dollars at period-end exchange
rates  and  resulting  translation  adjustments  are  reflected  as  a  separate
component  of  stockholders'  equity.  Revenues  and  expenses  of Tian Yuan are
translated at exchange  rates in effect on the  transaction  dates.  Transaction
gains or losses  that arise from  exchange  rate  fluctuations  on  transactions
denominated in a currency other than the functional currency are included in the
consolidated statement of operations of Tian Yuan as they occur.

Fair value of financial  instruments  - For certain of the  Company's  financial
instruments,  including cash and cash equivalents,  prepaid  expenses,  accounts
payable  and  other  accrued  liabilities,  and due from  related  parties,  the
carrying amounts approximate fair value due to their short maturities.

Earnings  per share - Basic  earnings  or loss per share  ("EPS") is computed by
dividing net loss  (numerator)  by the weighted  average number of common shares
outstanding  (denominator).  Diluted  EPS  is  computed  by  dividing  net  loss
(numerator)  by the weighted  average number of common shares  outstanding  plus
dilutive  common  stock  equivalents,  for which  there were none for any of the
periods  presented.  All  per  share  and per  share  information  are  adjusted
retroactively to reflect stock splits and changes in par value.

Stock-based  compensation - The Company  accounts for  stock-based  compensation
using  the  fair  value  method  prescribed  in  SFAS  No.123,  "Accounting  for

                                       9

<PAGE>

Stock-Based  Compensation,"  and  SFAS  No.  148,  "Accounting  for  Stock-Based
Compensation - Transition and Disclosure, amending FASB No. 123, and "Accounting
for Stock-Based Compensation".  SFAS No. 148 amends Statement No. 123 to provide
alternative  methods of transition for an entity that voluntarily changes to the
fair value based method of accounting  for  stock-based  employee  compensation.
SFAS No. 148 amends APB Opinion No. 28 "Interim Financial  Reporting" to require
disclosure about those effects in interim financial information. The adoption of
SFAS No. 148 has no impact on the  Company.  As of October 31, 2004 and December
31, 2004, the Company did not have any stock option plan or outstanding options.

Comprehensive  income - The Company includes items of other comprehensive income
(loss)  by their  nature,  such as  translation  adjustments,  in the  financial
statements and displays the accumulated  balance of other  comprehensive  income
(loss) separately from accumulated deficit and additional paid-in capital in the
equity section of the balance sheet. The Company  discloses total  comprehensive
loss, its components and accumulated  balances on its statement of stockholders'
equity.

Related  party  transaction  - A related  party is generally  defined as (i) any
person that holds 10% or more of the Company's  securities  and their  immediate
families,  (ii)  the  Company's  management,  (iii)  someone  that  directly  or
indirectly  controls,  is  controlled  by or is under  common  control  with the
Company,  or (iv)  anyone who can  significantly  influence  the  financial  and
operating  decisions of the Company. A transaction is considered to be a related
party  transaction when there is a transfer of resources or obligations  between
related parties.

Recent  Accounting  Pronouncements  - The Financial  Accounting  Standards Board
issued the following  pronouncements  during 2004, none of which are expected to
have a significant affect on the Company's consolidated financial statements:

In November 2004, the FASB issued SFAS No. 151,  "Inventory  Costs (An Amendment
of ARB No. 43, Chapter 4)". SFAS 151 amends and clarifies  financial  accounting
and reporting for abnormal amounts of idle facility expense,  freight,  handling
costs, and wasted material (spoilage). The Company has adopted the provisions of
SFAS No. 151 which are effective in general for inventory  costs incurred during
fiscal years  beginning after June 15, 2005. The adoption of this statement does
not affect the Company.

In  December  2004,  the FASB  issued  a  revision  of  Statement  of  Financial
Accounting  Standards No. 123,  "Accounting for Stock-Based  Compensation" (SFAS
123R). SFAS 123R supersedes APB Opinion No. 25,  "Accounting for Stock Issued to
Employees,"  and its  related  implementation  guidance.  SFAS 123R  establishes
standards  for the  accounting  for  transactions  in  which  an  entity  incurs
liabilities  in exchange for goods or services  that are based on the fair value
of the  entity's  equity  instruments  or that may be settled by the issuance of
those equity instruments.  SFAS 123R does not change the accounting guidance for
share-based  payment  transactions with parties other than employees provided in
SFAS 123 as originally  issued and EITF Issue No. 96-18,  "Accounting for Equity
Instruments  That Are  Issued  to Other  Than  Employees  for  Acquiring,  or in
Conjunction with Selling, Goods or Services." SFAS 123R is effective for interim
reporting  period that begins after June 15, 2005. The Company is in the process
of  determining  the  effect  of the  adoption  of SFAS  123R  will  have on its
financial position, results of operations, or cash flows.

In December  2004,  the FASB issued  SFAS No. 152,  "Accounting  for Real Estate
Time-Sharing  Transactions  - an  amendment of FASB  Statements  No. 66 and 67,"
which  discusses  the  accounting  and  reporting  of real  estate  time-sharing
transactions.  This  Statement is effective for financial  statements for fiscal

                                       10

<PAGE>

years  beginning  after June 15, 2005,  and  restatement  of  previously  issued
financial  statements  is not  permitted.  This  statement  does not  affect the
Company.

In December 2004, the FASB issued SFAS No. 153, "Exchanges of Nonmonetary Assets
- an  amendment  of APB  Opinion  No.  29." The  guidance in APB Opinion No. 29,
"Accounting  for  Nonmonetary  Transactions,"  is  based on the  principle  that
exchanges of  nonmonetary  assets should be measured  based on the fair value of
the  assets  exchanged  and  provided  an  exception  to the  basic  measurement
principle  (fair  value)  for  exchanges  of  similar  productive  assets.  That
exception  required  that  some  nonmonetary  exchanges,  although  commercially
substantive,  be recorded on a carryover  basis.  This Statement  eliminates the
exception to fair value for exchanges of similar  productive assets and replaces
it  with a  general  exception  for  exchange  transactions  that  do  not  have
commercial  substance--that  is, transactions that are not expected to result in
significant changes in the cash flows of the reporting entity. The provisions of
this Statement are effective for nonmonetary asset exchanges occurring in fiscal
periods  beginning after June 15, 2005,  applied  prospectively.  This statement
does not affect the Company.

In May  2005,  the FASB  issued  SFAS No.  154,  "Accounting  Changes  and Error
Corrections." SFAS No. 154 replaces APB Opinion No. 20 "Accounting  Changes" and
SFAS No. 3, "Reporting Accounting Changes in Interim Financial Statements." SFAS
No.  154  requires   retrospective   application  to  prior  periods'  financial
statements of changes in accounting  principle,  unless it is  impracticable  to
determine  either the  period-specific  effects or the cumulative  effect of the
change.  The adoption of SFAS No. 154 does not have any impact on the  Company's
financial statements.

3. Mineral Property

On September  20,  2004,  the Company  acquired  Tian Yuan for a cash payment of
$1,600,000  (RMB13222880),  which  holds the  exploration  permit of  Xietongmen
Copper-Gold  Property  in  Tibet,  China.  Title to mining  properties  involves
certain  inherent risks due to the  difficulties  in determining the validity of
certain  claims as well as the  potential  for  problems  arising from the often
complicated  conveyancing history characteristic of many mining properties.  The
Company does not have title insurance but has  investigated  title to all of its
mineral  properties and, to the best of its knowledge and belief,  titles to all
of its properties are in good standing.

                                           RMB                 USD
                                     -------------------- -------------------
Balance, beginning of period     $                     -                   -
Acquired during the period                    12,953,616           1,565,185
                                     -------------------- -------------------
Balance - October 31, 2004       $            12,953,616           1,565,185
                                     ==================== ===================

Balance, beginning of period     $                     -                   -
Acquired during the period                    12,953,616           1,564,797
Balance - December 31, 2004      $            12,953,616           1,564,797
                                     ==================== ===================

The Company incurred the following exploration expenses in the Xietongmen
Copper-Gold Property:

<TABLE>
<CAPTION>

                                                                                                    Cumulative amounts
                                                   For the period from      For the period from      from inception of
                                                  inception to October      November 1, 2004 to       the exploration
                                                        31, 2004             December 31, 2004             stage

                                                 ------------------------ ------------------------ ----------------------
<S>                                         <C>                                 <C>                       <C>
Exploration expenses:
   Assay and analysis                       $                     12,326                    3,967                 16,293
   Storage and handling/shipping                                   7,023                    1,646                  8,669
   Drill contractor                                                  792                   91,895                 92,687
   Rentals/leases                                                  1,772                      754                  2,526
   Geological services and supplies                                9,107                      146                  9,253
   Geological wages                                              113,062                   11,030                124,092
   Geological director salaries                                    5,261                    1,827                  7,088
   Freight                                                             -                       31                     31
   Graphics mapping wages                                          4,229                       68                  4,297
   Graphics services                                                 986                      592                  1,578
   Field supplies                                                 32,243                    7,055                 39,298
   Site contractors                                               17,677                    2,639                 20,316
                                                 ------------------------ ------------------------ ----------------------
                                            $                    204,478                  121,650                326,128
                                                 ======================== ======================== ======================
</TABLE>

                                       11

<PAGE>

4. Related Party Transactions

(a)       For the periods from  inception to October 31, 2004,  November 1, 2004
          to December  31,  2004,  and  cumulative  amounts  from  inception  to
          December 31, 2004, the Company incurred $25,139, $16,767, and $41,906,
          respectively,  for management  services  provided by an ex-shareholder
          and  ex-director  of the Company.  As of December 31, 2004 and October
          31, 2004, the Company has amounts of $41,906 and $25,139  respectively
          due to the ex-shareholder and ex-director of the Company.

          As of October 31, 2004,  the Company  issued a  promissory  note to an
          ex-shareholder  and  ex-director  of the  Company  for an  advance  of
          $642,474.  In November 2004, the ex-shareholder and ex-director agreed
          to waive the amount due to him and the amount  $642,474 is recorded as
          a contribution (additional paid-in capital) of the Company.

(b)       As of  December  31, 2004 and  October  31,  2004,  the Company had an
          amount of $17,775 and  $32,867  payable to four  ex-directors  of Tian
          Yuan. The amounts were non-interest  bearing and had no specific terms
          of repayment.

(c)       As of December 31, 2004 and October 31, 2004,  the Company has amounts
          of $496,623 and $363,605, respectively,  payable to N8C Resources Inc.
          ("N8C").   N8C  is  incorporated  in  the  Cayman  Islands  and  is  a
          wholly-owned  subsidiary of KMK. Through N8C, KMK may earn up to a 60%
          interest in the Company, as described below. N8C has certain directors
          in  common  with  the  Company  and  provides  geological,  technical,
          corporate development,  administrative and management services to, and
          incurs third party costs on behalf of, the Company. The amounts due to
          N8C were  advanced  by N8C to the  Company  to enable  the  Company to
          conduct its  exploration  program at the  Xietongmen  Property.  These
          amounts bear interest at LIBOR plus 2% per annum,  compounded  monthly
          effective from April 15, 2005.  Half of these amounts will be assigned
          to CTVH and the  remaining  half of these  amounts will be assigned to
          CTVH at a nominal  amount in the event  that N8C or KMK  abandons  the
          Xietongmen exploration program.

(d)       As of December 31, 2004 and October 31, 2004,  the Company had amounts
          of $39,986  and  $51,663,  respectively,  due from  Honglu  Investment
          Holdings Limited, which has directors in common with CTVH.

(e)       The founding  shareholders  of the Company signed an Option  Agreement
          with Continental Minerals Corporation ("KMK"), a company listed on the
          Toronto  Venture  Exchange  under the trading  symbol  "KMK" and China
          NetTV  Holding  Inc.  ("CTVH"),  a company  listed on the Nasdaq OTCBB
          under the trading  symbol  "CTVH" in November  2004.  Under the Option
          Agreement,  KMK  acquired  options  to  earn  up to 60% of the  equity
          interest of the Company, which owns 100% of the Xietongmen Copper-Gold
          Property located  approximately  240 kilometers  southwest of Lhasa in
          Tibet, China, through its wholly owned subsidiary, Tian Yuan.

          KMK can earn an initial 50% equity  interest in the Company  ("Tranche
          One") by making an  initial  payment  of $2  million  comprising  $1.2
          million upon receipt of regulatory  approvals  (paid in December 2004)
          and $0.8 million balance within one year to the founding  shareholders
          of the Company,  and spending a further $5 million for  exploration of
          the Xietongmen Copper-Gold Property. Of this, exploration expenditures
          of $3 million  are to be spent by  November  9, 2005 with a further $2
          million of exploration expenditures to be spent by November 9, 2006.

          Upon acquisition of 50% of the Company,  KMK can increase its interest
          in the Company to 60% ("Tranche Two") by spending a further $3 million
          in the exploration of the Xietongmen  Copper-Gold  Property within the
          ensuing year, i.e. November 9, 2007.

                                       12

<PAGE>

          The founding  shareholders  also sold the  remaining 50% of the equity
          interest of the Company to CTVH in exchange for  85,000,000  of common
          shares of CTVH from  treasury and an agreement to issue  65,000,000 of
          the common  shares of CTVH.  In the event KMK exercises its options to
          increase the ownership in the Company to 60% by  fulfilling  the terms
          and conditions mentioned above, CTVH will relinquish 10% of its equity
          interest in the Company.

          Under the  Shareholders  Agreement  dated  December 23, 2004, KMK will
          manage the Company and Tian Yuan  during the option  period.  Once the
          option  is  exercised,   further   funding  of  the  Company  will  be
          proportional  to interests held in the project,  with a  proportionate
          reduction in the shareholdings of any shareholder which fails to match
          the funding of the others. If any party's shareholdings in the Company
          fall below 15%, it may elect to convert its holdings to an entitlement
          of 12.5% of the after pay-back profit of the Company.

5. Segmented Information

Operating  segments  are  defined as  components  of an  enterprise  about which
separate financial  information is available that is evaluated  regularly by the
chief operation  decision maker,  or  decision-making  group, in deciding how to
allocate resources and in assessing performance.

The Company's only operating  segment is mineral  exploration and its operations
are  centralized  whereby  the  Company's  head  office is  responsible  for the
exploration  results and  providing  support in  addressing  local and  regional
issues.  The  Company's  two  geographic  segments  are  BVI and  China  and the
following represents the segment information for the periods presented:

<TABLE>
<CAPTION>

From inception to December 31, 2004                            BVI               China             Total
---------------------------------------------------- -- ------------------- ----------------- -----------------
<S>                                                  <C>           <C>            <C>                <C>
Loss for the period                                  $             519,047             (969)           518,078
Interest revenue                                     $               3,450               969             4,419
Interest expense                                     $                   -                 -                 -
Mineral property interest                            $                   -         1,564,797         1,564,797
Total assets                                         $              82,533         1,616,551         1,699,084

From November 1, to December 31, 2004                          BVI               China             Total
---------------------------------------------------- -- ------------------- ----------------- -----------------

Loss for the period                                  $             171,438             (474)           170,964
Interest revenue                                     $                  11               474               485
Interest expense                                     $                   -                 -                 -
Mineral property interest                            $                   -         1,564,797         1,564,797
Total assets                                         $              82,533         1,616,551         1,699,084

From inception to October 31, 2004                             BVI               China             Total
---------------------------------------------------- -- ------------------- ----------------- -----------------

Loss (profit) for the period                         $             347,609             (495)           347,114
Interest revenue                                     $               3,439               495             3,934
Interest expense                                     $                   -                 -                 -
Mineral property interest                            $                   -         1,565,185         1,565,185
Total assets                                         $              94,571         1,631,204         1,725,775
</TABLE>


6. Commitments, Obligations and Contingencies

(1) According to an agreement with the local Chinese authority,  the Company has
agreed to pay  RMB120000  ($14,496) in the mid of year 2005 in the form of three
motor vehicles in lieu of the payment of land compensation fees. The Company met
its obligation in May 2005.

                                       13

<PAGE>

(2)  The  Company's  mining  activities  are  subject  to laws  and  regulations
controlling not only the exploration and mining of mineral properties,  but also
the effect of such activities on the environment.  Compliance with such laws and
regulations may necessitate additional capital outlays,  affect the economics of
a  project,  and  cause  changes  or  delays in the  Company's  activities.  For
exploration  license  renewal  purpose,  the  Company  has to incur a minimum of
RMB129100  ($15,596)  per  annum on  exploration  activities  at the  Xietongmen
Copper-Gold Property.






















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