Document:

EXHIBIT 10.1

                                   AGREEMENT

<PAGE>

EXHIBIT 10.1

                                   AGREEMENT

     THIS AGREEMENT (the "Agreement"),  dated as of the 5 day of November, 2004,
between CHINA NETTV HOLDINGS INC., a Nevada corporation ("ChinaNet"), and Honglu
Shareholders (as defined in Recital D).

     WHEREAS:

A.   Pursuant to an Acquisition  Agreement dated July 4, 2003 (the  "Acquisition
     Agreement")  and an Amend  Agreement  dated April 12, 2004 (the  "Amendment
     Agreement", the Acquisition Agreement and the Amendment together are called
     the "Acquisition  Agreements"),  ChinaNet issued,  to Honglu  Shareholders,
     97,700,000  shares  on July 4,  2003,  and  40,000,000  on April  12,  2004
     (together  the  "Exchange  Shares")  in  exchange  for all the  issued  and
     outstanding  shares of Honglu  Shareholders  (the  "Honglu  Shares") in the
     capital of Honglu Investment  Holdings Inc.  ("Honglu") (the share exchange
     transaction is called hereafter the "Acquisition").

B.   By a letter dated August 10, 2004 (the "Rejection  Letter"),  the Depart of
     Commerce of Tibet,  China,  which has the power and authority to approve or
     not to approve the  Acquisition,  advised its  decision  not to approve the
     Acquisition.  As a result of and subsequent to the Rejection Letter, Honglu
     Shareholders  requested the  termination of the  Acquisition  Agreement and
     tendered the Exchange Shares for cancellation.

C.   Honglu Shareholders  hereunder are all the shareholders of Honglu as at the
     date of this Agreement,  holding all the issued and  outstanding  shares of
     Honglu as at the date of this Agreement.

D.   The parties agree to enter into this Agreement to confirm the  cancellation
     of the Exchange Shares, the return of Honglu Shares, and termination of the
     Acquisition Agreements.

     NOW,  THEREFORE,  in consideration of the mutual promises and covenants set
forth  herein,  and for other good and valuable  consideration,  the receipt and
sufficiency  of which hereby are  acknowledged,  the parties  hereto agree to be
legally bound as follows:

1. The parties  acknowledge  and agree that the Acquisition as it was structured
in the  Acquisition  Agreements  was and will not be approved by the  regulatory
authorities  in China.  The parties  confirm and agree that the  Acquisition  is
hereby cancelled and terminated,  and the Acquisition Agreements are terminated.
As a result of the  termination,  the Exchange  Shares are surrendered by Honglu
Shareholders to ChinaNet and cancelled, Honglu Shares are hereby surrendered and

<PAGE>

returned by ChinaNet to Honglu  Shareholders,  and ChinaNet shall hereafter have
no right to and interest in Honglu Shares. The parties further confirm and agree
that the finder's fees of 6,839,000  and 2,800,000  shares issued by ChinaNet in
relation to the Acquisition  are also cancelled.  The parties further agree that
all  options  issued to and all  material  contracts  entered  into with  Honglu
Shareholders and officers (together  "Related  Transactions") as a result of, or
arising from,  the  Acquisition  Agreements are cancelled and  terminated.  As a
result , the total number of issued and outstanding  shares of ChinaNet shall be
57,036,000 as at the date of this Agreement,  and Honglu Shareholders shall hold
all the shares in the capital of Honglu.

2. Each of ChinaNet and Honglu  Shareholders shall do such further things,  sign
further  documents,  and cause  such  corporate  action to be taken to effect or
approve  the  cancellation  of the  Acquisition  and the  Exchange  Shares,  the
termination  of the  Acquisition  Agreements and Related  Transactions,  and the
return of Honglu  Shares.  Each of  ChinaNet  and Honglu  Shareholders  shall be
responsible for their respect legal expenses in respect of the  cancellation and
the  termination.  Honglu  Shareholders  further  agree  that they shall do such
things,  or cause such things to be done, so that the transactions  contemplated
under the Acquisition  Agreements can be restructured  and completed to meet the
Chinese regulatory requirement, and the intent of the parties in the Acquisition
Agreements.

3. Honglu  Shareholders hereby fully,  forever,  irrevocably and unconditionally
release, remise and discharge ChinaNet and its subsidiaries and their respective
directors,  officers,  employees,  agents,  acting in such  capacity,  and their
respective  successors and assigns  (collectively,  the "ChinaNet Releasees") of
and  from  any and all  claims,  counterclaims,  charges,  complaints,  demands,
actions,  causes of  action,  suits,  remedies,  rights,  sums of money,  costs,
losses, covenants, contracts,  controversies,  agreements,  promises, omissions,
damages,   executions,   obligations,   liabilities,   and  expenses  (including
reasonable   attorneys'   fees  and  costs,   expert  witness  fees  and  costs,
consultants'  fees and  costs),  of every  kind and nature  whatsoever,  whether
direct or  indirect,  known or  unknown,  either at law,  in  equity,  or mixed,
whether statutory,  common, federal, state, local or otherwise under the laws of
any jurisdiction  (collectively,  the "Claims"),  which Honglu Shareholders ever
had, now have or can, shall,  or may have in the future against  ChinaNet or any
other ChinaNet Releasee by reason of, on account of, or arising out of any fact,
incident,  claim,  injury,  event,  circumstance,  matter  or  thing  which  has
happened, developed or occurred, of any kind or nature whatsoever, in connection
with the  Acquisition,  and any matters arising from the subject matters of this
Agreement.

4.  ChinaNet,  and anyone else claiming by,  through or under  ChinaNet,  hereby
fully, forever, irrevocably and unconditionally releases, remises and discharges
Honglu  Shareholders,  and their  respective  assigns or  transferees  (together
"Honglu  Releasees") of and from any and all Claims which ChinaNet ever had, now
has, or can, shall, or may have in the future against Honglu Shareholders or any
Honglu  Releasees  by reason  of, on  account  of, or  arising  out of any fact,
incident,  claim,  injury,  event,  circumstance,  matter  or  thing  which  has
happened, developed or occurred, of any kind or nature whatsoever, in connection
with the Acquisition or any subject matters of this Agreement.

                                       2
<PAGE>

5. It is  understood  and agreed by the parties  hereto that this  Agreement  is
being executed in connection with the Acquisition, and the cancellation thereof,
and that neither this Agreement nor the releases  contained herein constitute an
acknowledgement or admission of liability in any way on the part of either party
hereto or its successors, assigns, directors, stockholders, officers, employees,
agents,  attorneys,  representatives,  affiliates and subsidiaries,  all of whom
expressly deny any liability for any and all claims of whatsoever nature.

6. The  parties  agree not to  institute  any  charge,  complaint  or lawsuit to
challenge the validity of this Agreement or the  circumstances  surrounding  its
execution.

7. This  Agreement  shall be construed in accordance  with,  and governed in all
respects  by the laws of the State of  Nevada,  without  regard to choice of law
principles thereof.

8. Should any provision of this  Agreement be declared,  or be determined by any
court or  administrative  agency to be  illegal  or  invalid,  the  legality  or
validity  of the  remaining  parts,  terms or  provisions  shall not be affected
thereby and said illegal or invalid part, term, or provision shall be deemed not
to be a part of this Agreement.

9. This Agreement sets forth the entire  agreement  between the parties  hereto,
and fully supersedes any and all prior agreements or understandings  between the
parties  hereto  pertaining  to the  subject  matter  hereof,  except  for  this
Agreement as this Agreement is entered into in  furtherance  of this  Agreement.
This Agreement may not be changed orally or otherwise,  but only by agreement in
writing  of  concurrent  or  subsequent  date,   signed  by  a  duly  authorized
representative of the parties hereof.

10.  This  Agreement  may be executed  in  counterparts,  each of which shall be
deemed an original and all of which shall constitute a singe instrument.

     IN WITNESS WHEREOF,  the parties have entered into this Agreement as of the
date first written above.

                                    CHINA NETTV HOLDINGS INC.

                                    By: /s/ _______________________________
                                    Name:  _____________
                                    Title:    _____________

                                    HONGLU SHAREHOLDERS

                                    /s/ Wang Zhi
                                    ----------------------------------------
                                    Name: Wang Zhi

                                    /s/ Ma Xiaojun
                                    ---------------------------------------
                                    Name: Ma Xiaojun

                                    /s/ Bao Li
                                    ---------------------------------------
                                    Name: Bao Li

                                       3EXHIBIT 10.2

                          AGREEMENT FOR SHARE EXCHANGE

<PAGE>

EXHIBIT 10.2

                          AGREEMENT FOR SHARE EXCHANGE

     AGREEMENT FOR SHARE EXCHANGE ("AGREEMENT") dated as of November 5, 2004, by
and among ChinaNet  Holdings Inc., a Nevada,  USA Corporation  ("ChinaNet")  and
Yuemei Liang,  Zhiming Liang, Yulin Chen,  (together  "Highland  Shareholders"),
holders of 50% of issued and outstanding shares in the capital stock of Highland
Mining Inc., a British Virgin Islands corporation ("Highland").

RECITALS:

     WHEREAS,  ChinaNet  and Highland  Shareholders  have agreed to enter into a
binding  transaction  whereby  ChinaNet shall issue certain number of its common
shares from treasury in exchange for 50% of the issued and outstanding shares of
Highland  held by Highland  Shareholders,  pursuant to the terms and  conditions
hereinafter set forth (the "Exchange"); and

     WHEREAS, the parties desire to make certain representation,  warranties and
agreements  in  connection  with  the  Exchange  and also to  prescribe  various
conditions to the Exchange.

     NOW, THEREFORE, in consideration of the foregoing recitals,  which shall be
considered an integral part of this  Agreement,  and the covenants,  conditions,
representations  and warranties  hereinafter set forth, the parties hereby agree
as follows:

                                    ARTICLE I

                                  THE EXCHANGE

     1.1 The Exchange. At the Closing (as hereinafter  defined),  ChinaNet shall
acquire, from Highland Shareholders, 500,000 shares of Common Stock of Highland,
representing  50% of the issued and  outstanding  stock of  Highland  ("Highland
Shares").  Consideration  to be issued by ChinaNet to Highland  Shareholders  or
their  nominees in exchange  for the  Highland  Shares  shall be the issuance of
85,000,000  of common  stock and a  debenture  convertible  into  65,000,000  of
ChinaNet shares (the "Exchange Shares").  The Exchange shall take place upon the
terms and conditions  provided for in this Agreement and applicable  laws of the
jurisdiction of the parties.

     Notwithstanding this paragraph 1.1, if Highland  Shareholders are unable to
enter into a binding  agreement on a share  purchase and sale  transaction  (the
"Definitive  Agreement") with Hunter Dickinson Inc. ("HDI") to sell and transfer
the other 50% of the issued and  outstanding  shares of Highland (the "Remaining
Shares") to HDI on or before March 30, 2005 (the "Outside  Date"),  or if either
or both  HDI and  Highland  Shareholders  decide  to  terminate  the  Definitive

<PAGE>

Agreement  pursuant to the terms and conditions therein on or before the Outside
Date, then unless Highland  Shareholders and ChinaNet otherwise agree,  Highland
Shareholders  shall sell and  transfer  the  Remaining  Shares to  ChinaNet at a
nominal price,  pursuant to the same terms and conditions contained hereunder as
applicable to the parties then.

     1.2 Other Mineral Properties. Highland Shareholders have direct or indirect
rights or options to, or  interests  in,  (the  rights,  options  and  interests
together are called  "Additional  Rights") certain mineral  properties in Tibet,
China (the  "Additional  Properties") as listed in Schedule "A" attached hereto,
subject to terms and  conditions  and  regulatory  requirements  attached to the
Additional Rights.  Highland  Shareholders  hereby transfer and assign, or shall
cause to be  transferred  and assigned,  to ChinaNet the  Additional  Rights for
$1.00,  subject to terms and  conditions and  regulatory  requirements  attached
thereto, and terms and conditions herein.

     1.3  Closing  and  Effective  Time.  Subject  to  the  provisions  of  this
Agreement,  the parties  shall hold a closing (the  "Closing")  on (i) the first
business  day on which the last of the  conditions  set forth in Article V to be
fulfilled prior to the Closing is fulfilled or waived or (ii) such other date as
the parties hereto may agree (the "Closing Date"), at such time and place as the
parties  hereto  may  agree.  Such  date  shall  be the  date of  Exchange  (the
"Effective Time").

     1.4 Management of Highland.  Upon completion of the Exchange, the following
individuals shall be elected or appointed as directors of Highland:

          Zhi Wang
          Jie Yang
          Xiaojun Ma
          Jing Wang
          Maurice Tsakok

     1.5 Management of ChinaNet.  Upon completion of the Exchange, the following
individuals shall be elected or appointed as directors of ChinaNet.

          Zhi Wang
          Jie Yang
          Xiaojun Ma
          Jing Wang
          Maurice Tsakok

     1.6 Finder's  Fee.  There will be a finder's fee in the form of a debenture
convertible  into  9,639,000  ChinaNet  shares  payable to Ronald Xiuru Xie upon
completion of the Exchange.

                                       2
<PAGE>

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

     2.1  Representations  and Warranties of ChinaNet.  ChinaNet  represents and
warrants to Highland as follows:

     (a)  Organization,  Standing  and Power.  ChinaNet  is a  corporation  duly
     organized,  validly  existing  and in good  standing  under the laws of the
     State of Nevada,  has all requisite  power and authority to own,  lease and
     operate its properties and to carry on its business as now being conducted,
     and  is  duly  qualified  and in  good  standing  to do  business  in  each
     jurisdiction  in which  the  nature of its  business  or the  ownership  or
     leasing of its properties makes such qualification necessary.

     (b) Capital Structure. The authorized capital stock of ChinaNet consists of
     200,000,000  common  shares.  As at the date of this  Agreement  the  total
     number of issued and outstanding shares of ChinaNet shall be 57,036,200 All
     outstanding  common shares of ChinaNet  are, and the Exchange  Shares to be
     issued pursuant to this Agreement will be when issued pursuant to the terms
     of the  resolution  of the Board of  Directors of ChinaNet  approving  such
     issuance,  validly issued,  fully paid and nonassessable and not subject to
     preemptive  rights.  All of the issued  and  outstanding  common  shares of
     ChinaNet  were issued in compliance  with all Federal and state  securities
     laws. Except those contained in Schedule "B" attached hereto,  there are no
     options,  warrants,  calls,  agreements  or other  rights  to  purchase  or
     otherwise  acquire from  ChinaNet at any time, or upon the happening of any
     stated event,  any shares of the capital stock of ChinaNet,  whether or not
     presently issued or outstanding.

     (c) Certificate of Incorporation,  By-Laws, and Minute Books. The copies of
     the  Articles of  Incorporation  and of the By-Laws of ChinaNet  which have
     been delivered to Highland are true,  correct and complete  copies thereof.
     The minute books of ChinaNet  which have been made available for inspection
     contain accurate  minutes of all meetings and accurate  consents in lieu of
     meetings of the Board of Directors  (and any committee  thereof) and of the
     shareholders of ChinaNet since the respective  dates of  incorporation  and
     accurately  reflect  all  transactions  referred  to in  such  minutes  and
     consents in lieu of meetings.

     (d) Authority. ChinaNet has all requisite power and authority to enter into
     this Agreement and to consummate the transactions  contemplated hereby. The
     execution  and  delivery  of this  Agreement  and the  consummation  of the
     transactions  contemplated hereby have been duly authorized by the Board of
     Director of ChinaNet. No other corporate or shareholder  proceedings on the
     part of ChinaNet  are  necessary to authorize  the  Exchange,  or the other
     transactions contemplated hereby.

                                       3
<PAGE>

     (e) Conflict with Other Agreements;  Approvals.  The execution and delivery
     of this  Agreement  does  not,  and the  consummation  of the  transactions
     contemplated  hereby will not result in any  violation of, or default (with
     or without notice or lapse of time, or both) under, or give rise to a right
     of termination,  cancellation or acceleration of any obligation or the loss
     of a material  benefit under, or the creation of a lien,  pledge,  security
     interest  or other  encumbrance  on assets (any such  conflict,  violation,
     default,  right  of  termination,  cancellation  or  acceleration,  loss or
     creation,  a  "violation")  pursuant to any  provision  of the  Articles of
     Incorporation  or By-laws or any  organizational  document of ChinaNet  or,
     result in any violation of any loan or credit  agreement,  note,  mortgage,
     indenture, lease, benefit plan or other agreement, obligation,  instrument,
     permit, concession,  franchise,  license, judgment, order, decree, statute,
     law, ordinance,  rule or regulation  applicable to ChinaNet which violation
     would have a  material  adverse  effect on  ChinaNet  taken as a whole.  No
     consent, approval, order or authorization of, or registration,  declaration
     or filing with,  any court,  administrative  agency or  commission or other
     governmental   authority  or   instrumentality,   domestic  or  foreign  (a
     "Governmental  Entity")  is  required  by or with  respect to  ChinaNet  in
     connection with the execution and delivery of this Agreement by ChinaNet or
     the consummation by ChinaNet of the transactions contemplated hereby.

     (f) Books  and  Records.  ChinaNet  has made and will  make  available  for
     inspection by Highland  Shareholders upon reasonable  request all the books
     of ChinaNet  relating to the business of  ChinaNet.  Such books of ChinaNet
     have been  maintained  in the ordinary  course of business.  All  documents
     furnished or caused to be furnished  to Highland  Shareholders  by ChinaNet
     are true and correct copies,  and there are no amendments or  modifications
     thereto except as set forth in such documents.

     (g)  Compliance  with Laws.  ChinaNet is and has been in  compliance in all
     material respects with all laws,  regulations,  rules,  orders,  judgments,
     decrees and other  requirements  and policies  imposed by any  Governmental
     Entity applicable to it, its properties or the operation of its businesses.

     (h) Financial  Statements.  ChinaNet has delivered to Highland Shareholders
     financial  statements for the periods  ending  September 30, 2004 which has
     been reviewed and accepted by an  independent  US auditor.  Such  financial
     statements  are  true  and  correct,   and  provide  a  fair  and  accurate
     presentation  of the  financial  condition  and assets and  liabilities  of
     ChinaNet as of the date thereof.

     (i) Litigation.  There is no suit, action or proceeding pending, or, to the
     knowledge of ChinaNet,  threatened  against or affecting  ChinaNet which is
     reasonably  likely to have a material  adverse  effect on ChinaNet,  nor is
     there any judgment, decree,  injunction,  rule or order of any Governmental
     Entity or arbitrator outstanding against ChinaNet having, or which, insofar
     as reasonably can be foreseen, in the future could have, any such effect.

                                       4
<PAGE>

     (j) Tax  Returns.  ChinaNet  has duly  filed all tax  reports  and  returns
     required  to be filed by it and has fully paid all taxes and other  charges
     claimed to be due from it by any federal, state or local taxing authorities
     (including  without  limitation  those due in  respect  of its  properties,
     income,  franchises,  licenses, sales and payrolls);  there are not now any
     pending questions relating to, or claims asserted for, taxes or assessments
     asserted upon ChinaNet.

     2.2  Representations  and  Warranties  of  Highland  Shareholders  Highland
Shareholders represent and warrant to ChinaNet as follows:

     (a)  Organization,  Standing and Power.  To the best  knowledge of Highland
     Shareholders,  Highland is a corporation  duly organized,  validly existing
     and in good  standing  under the laws of British  Virgin  Islands,  has all
     requisite  power and authority to own, lease and operate its properties and
     to carry on its business as now being conducted,  and is duly qualified and
     in good standing to do business in each jurisdiction in which the nature of
     its  business  or the  ownership  or leasing of its  properties  makes such
     qualification necessary.

     (b) Capital Structure. The authorized capital stock of Highland consists of
     1,000,000  shares of Common  Stock with a par value of  US$1.00.  As at the
     date of this  agreement,  1,000,000  shares of Common Stock were issued and
     outstanding.   To  the  best  knowledge  of  Highland   Shareholders,   all
     outstanding Highland shares including in particular the Highland Shares are
     validly issued,  fully paid and nonassessable and not subject to preemptive
     rights or other restrictions on transfer; all of the issued and outstanding
     shares of  Highland  in  particular  the  Highland  Shares  were  issued in
     compliance  with all  applicable  securities  laws;  there are no  options,
     warrants,  calls,  agreements  or other  rights to  purchase  or  otherwise
     acquire  from  Highland at any time,  or upon the  happening  of any stated
     event, any shares of the capital stock of Highland.

     (c)  Certificate of  Incorporation,  By-Laws and Minute Books.  To the best
     knowledge  of  Highland  Shareholders,  the  copies of the  Certificate  of
     Incorporation  and of the By-Laws of Highland  which have been delivered to
     ChinaNet are true, correct and complete copies thereof; the minute books of
     Highland  which have been made available for  inspection  contain  accurate
     minutes of all meetings  and  accurate  consents in lieu of meetings of the
     Board of Directors and of the  shareholders  of Highland  since the date of
     incorporation and accurately  reflect all transactions  referred to in such
     minutes and consents in lieu of meetings.

     (d) Authority. Highland Shareholders have all requisite power and authority
     to  enter  into  this   Agreement  and  to  consummate   the   transactions
     contemplated  hereby.  The execution and delivery of this Agreement and the

                                       5
<PAGE>

     consummation  of  the  transactions  contemplated  hereby  have  been  duly
     approved  by the Board of  Directors  of Highland  and by its  shareholders
     including Highland Shareholders.  This Agreement has been duly executed and
     delivered  by Highland  Shareholders  and  constitutes  a valid and binding
     obligation of Highland  Shareholders  enforceable  in  accordance  with its
     terms.

     (e) Conflict with Agreements;  Approvals. To the best knowledge of Highland
     Shareholders,  the execution and delivery of this  Agreement  does not, and
     the consummation of the transactions contemplated hereby will not, conflict
     with,  or result in any violation of any  provision of the  Certificate  of
     Incorporation  or By-laws of Highland  or of any loan or credit  agreement,
     note,  mortgage,   indenture,  lease,  benefit  plan  or  other  agreement,
     obligation,  instrument, permit, concession,  franchise, license, judgment,
     order, decree,  statute,  law, ordinance,  rule or regulation applicable to
     Highland  or its  properties  or assets.  No  consent,  approval,  order or
     authorization  of,  or  registration,   declaration  or  filing  with,  any
     Governmental Entity is required by or with respect to Highland Shareholders
     in connection with the execution and delivery of this Agreement by Highland
     Shareholders,   or  the  consummation  by  Highland   Shareholders  of  the
     transactions contemplated hereby.

     (f) Financial  Statements.  Highland  Shareholders have furnished  ChinaNet
     with unaudited  financial  statements as of September 30, 2004. To the best
     knowledge of Highland Shareholders,  the Highland financials statements are
     substantially  complete  and correct in all  material  respects  and fairly
     present in all material respects the financial condition and results of the
     operations  of Highland and the changes in its  financial  position at such
     dates and for such periods and show all material  liabilities,  absolute or
     contingent of Highland.

     (g) Books and Records. Highland Shareholders,  where appropriate, have made
     and will make available for inspection by ChinaNet upon reasonable  request
     all the books of account, relating to the business of Highland. To the best
     knowledge of Highland Shareholders,  such books of account of Highland have
     been maintained in the ordinary course of business. All documents furnished
     or caused to be furnished to ChinaNet by Highland Shareholders are true and
     correct copies, and there are no amendments or modifications thereto except
     as set forth in such documents.

     (h) Compliance  with Laws. To the best knowledge of Highland  Shareholders,
     Highland is and has been in  compliance  in all material  respects with all
     laws, regulations, rules, orders, judgments, decrees and other requirements
     and  policies  imposed by any  Governmental  Entity  applicable  to it, its
     properties or the operation of its businesses.

     (i)  Subsidiaries,  Mineral  Properties:  To the best knowledge of Highland
     Shareholders,  Highland fully and legally owns Tianyuan Mineral Exploration

                                       6
<PAGE>

     Ltd.  ("Tianyuan"),  a wholly owned and validly existing foreign enterprise
     registered in Tibet, China,  incorporated pursuant to relevant Chinese laws
     and  regulations,   which  holds  a  valid  exploration   license  covering
     Xietongmen Mine in Tibet,  China (a copy of the  Exploration  License and a
     copy of Business License issued to Tianyuan are attached hereto as Schedule
     "C") issued by the Ministry of Land and Resources of China.

     (j)  Liabilities  and  Obligations.  To  the  best  knowledge  of  Highland
     Shareholders,  Highland  has  conducted no business  activities  except the
     acquisition  of  Tianyuan,  has  no  material  liabilities  or  obligations
     (absolute,   accrued,  contingent  or  otherwise)  except  those  expressly
     disclosed in the financial statements delivered to ChinaNet.

     (k) Litigation. To the best knowledge of Highland Shareholders, there is no
     suit, action or proceeding  pending,  or,  threatened  against or affecting
     Highland  which is reasonably  likely to have a material  adverse effect on
     Highland or Highland Shares, nor is there any judgment, decree, injunction,
     rule or order of any Governmental Entity or arbitrator  outstanding against
     Highland having,  or which,  insofar as reasonably can be foreseen,  in the
     future could have, any such effect.

     (l) Taxes.  To the best  knowledge of Highland  Shareholders,  Highland has
     filed or will file within the time  prescribed by law (including  extension
     of time approved by the appropriate  taxing  authority) all tax returns and
     reports  required  to be filed  (including,  all  filings  with  all  other
     jurisdictions  including Tianyuan filings, where such filing is required by
     law); and Highland has paid, or made adequate  provision for the payment of
     all taxes, interest, penalties, assessments or deficiencies due and payable
     on, and with respect to such periods.

     (m)  Licenses,  Permits:  To the best  knowledge of Highland  Shareholders,
     Highland  owns or possesses  in the  operation of its business all material
     authorizations  which are  necessary  for it to conduct its business as now
     conducted.  Neither the  execution  or delivery of this  Agreement  nor the
     consummation  of the  transactions  contemplated  hereby  will  require any
     notice or consent under or have any material  adverse  effect upon any such
     authorizations.

     (n) No  Encumbrances:  Highland  Shareholders  are the legal and beneficial
     owners of Highland Shares.  The Highland Shares are duly and validly issued
     to   Highland   Shareholders,   free  from  any  lien,   claim,   mortgage,
     hypothecation,  or any other  encumbrances or security  interest,  save and
     except the terms of the Option  Agreement and the  obligations  of Highland
     Shareholders therein.

                                       7
<PAGE>

                                   ARTICLE III

                    COVENANTS RELATING TO CONDUCT OF BUSINESS

     3.1 Covenants of Highland and ChinaNet.  During the period from the date of
this Agreement and continuing  until the Effective Time,  Highland  Shareholders
and ChinaNet each agree as to themselves and their related entities that (except
as expressly contemplated or permitted by this Agreement,  or to the extent that
the other party shall otherwise consent in writing):

     (a) Ordinary Course. Each party shall carry on its respective businesses in
     the usual,  regular and ordinary course in substantially the same manner as
     heretofore conducted.

     (b)  Dividends;  Changes in Stock.  No party  shall (i) declare or cause to
     declare or pay any dividends on or make other  distributions  in respect of
     any of its capital  stock,  (ii) split,  combine or  reclassify  any of its
     capital  stock or issue or  authorize  or propose the issuance of any other
     securities in respect of, in lieu of or in  substitution  for shares of its
     capital  stock or (iii)  repurchase  or  otherwise  acquire,  or permit any
     subsidiary  to purchase  or  otherwise  acquire,  any shares of its capital
     stock.

     (c)  Issuance of  Securities.  No party  shall,  or shall cause to,  issue,
     deliver or sell, or authorize or propose the issuance, delivery or sale of,
     any  shares of its  capital  stock of any  class,  any  voting  debt or any
     securities convertible into, or any rights, warrants or options to acquire,
     any such shares, voting debt or convertible securities.

     (d) Governing Documents.  No party shall amend or propose to amend relevant
     Certificate of Incorporation or By-laws.

     (e) No  Dispositions.  Except for the  transfer  of assets in the  ordinary
     course of business  consistent  with prior  practice,  no party shall sell,
     lease,  encumber or otherwise dispose of, or agree to sell, lease, encumber
     or otherwise dispose of, any of the corporate  assets,  which are material,
     individually or in the aggregate, to such party.

     (f) Indebtedness. No party shall, or shall cause to, incur any indebtedness
     for borrowed money or guarantee any such  indebtedness or issue or sell any
     debt  securities  or warrants or rights to acquire any debt  securities  of
     such party or guarantee  any debt  securities  of others other than in each
     case in the ordinary course of business consistent with prior practice.

     (g) Regulatory  Compliance:  Each party shall, or shall cause to, make such
     filing or registration in the jurisdiction where it operates,  or cause its
     subsidiaries to make such filings or registration,  to ensure all licenses,

                                       8
<PAGE>

     permits and approvals required for the their operations in their respective
     jurisdiction are current and valid.

     3.2  Other  Actions.  No party  shall  take  any  action  that  would or is
reasonably  likely to result in any of its  representations  and  warranties set
forth in this  Agreement  being  untrue  as of the date  made (to the  extent so
limited), or in any of the conditions to the Exchange set forth in Article V not
being satisfied.

                                   ARTICLE IV

                              ADDITIONAL AGREEMENTS

     4.1  Shareholders   Approval  at  Highland.   Highland   Shareholders  have
previously received or will receive necessary approval,  consent or agreement in
relation to the Exchange.

     4.2  Restricted  ChinaNet  Shares;  Registration  Rights.  (a) The Exchange
Shares  will not be  registered  under the  Securities  Act,  but will be issued
pursuant  to  an  exemption  from  such  registration  requirements  based  upon
representations  and  warranties  made  by the  Shareholders.  Accordingly,  the
Exchange  Shares will  constitute  "restricted  securities"  for purposes of the
Securities Act and applicable state securities laws and Shareholders will not be
able  to  transfer  such  Exchange   Shares  except  upon  compliance  with  the
registration  requirements of the Securities Act and applicable state securities
laws or an exemption therefrom.  The certificates evidencing the Exchange Shares
shall  contain a legend  to the  foregoing  effect  and the  Shareholders  shall
deliver at Closing an Investment  Letter in  substantially  the form of Schedule
"D"  hereto  acknowledging  the fact that the  Exchange  Shares  are  restricted
securities and agreeing to the foregoing transfer restrictions.

     4.3 Access to Information.  Upon reasonable  notice,  ChinaNet and Highland
Shareholders shall each afford to the officers, employees,  accountants, counsel
and other  representatives  of the other party,  access to all their  respective
properties,  books, contracts,  commitments and records and, during such period,
each of ChinaNet and Highland  Shareholders  shall furnish promptly to the other
corporate and business  information as such other party may reasonably  request.
Unless  otherwise  required by law, the parties  will hold any such  information
which is nonpublic in confidence until such time as such  information  otherwise
becomes publicly  available  through no wrongful act of either party, and in the
event of  termination of this Agreement for any reason each party shall promptly
return all nonpublic  documents  obtained  from any other party,  and any copies
made of such documents, to such other party.

     4.4  Legal   Conditions   to  Exchange.   Each  of  ChinaNet  and  Highland
Shareholders shall take reasonable actions necessary to comply promptly with all
legal  requirements  which may be imposed on itself with respect to the Exchange
and will  promptly  cooperate  with and  furnish  information  to each  other in

                                       9
<PAGE>

connection with any such  requirements  imposed upon any of them or any of their
related  entities or subsidiaries  in connection  with the Exchange.  Each party
will take all  reasonable  actions  necessary to obtain (and will cooperate with
each other in obtaining)  any consent,  authorization,  order or approval of, or
any  exemption  by, any  Governmental  Entity or other  public or private  third
party,  required to be obtained or made by ChinaNet or Highland  Shareholders or
Highland or any of their related entities or subsidiaries in connection with the
Exchange or the taking of any action contemplated thereby or by this Agreement.

                                    ARTICLE V

                              CONDITIONS PRECEDENT

     5.1  Conditions  to Each Party's  Obligation  To Effect the  Exchange.  The
respective  obligation of each party to effect the Exchange  shall be subject to
the satisfaction prior to the Closing Date of the following conditions:

     (a) Necessary Approvals. All authorizations,  consents, orders or approvals
     of, or  declarations  or filings with, or  expirations  of waiting  periods
     imposed by, any Governmental  Entity the failure to obtain which would have
     a material  adverse  effect on ChinaNet or Highland  shall have been filed,
     occurred or been obtained.

     5.2 Conditions of Obligations of ChinaNet.  The  obligations of ChinaNet to
effect the Exchange are subject to the satisfaction of the following  conditions
on or before the Closing Date unless waived by ChinaNet:

     (a) Representations  and Warranties.  The representations and warranties of
     Highland Shareholders set forth in this Agreement shall be true and correct
     in all material  respects as of the date of this  Agreement  and (except to
     the extent such representations and warranties speak as of an earlier date)
     as of the Closing Date as though made on and as of the Closing Date, except
     as otherwise contemplated by this Agreement.

     (b)   Performance  of  Obligations  of  Highland   Shareholders.   Highland
     Shareholders  shall have performed in all material respects all obligations
     required to be performed by it under this Agreement at or prior the Closing
     Date.

     (c) Closing  Documents.  ChinaNet shall have received such certificates and
     other closing documents as counsel for ChinaNet shall reasonably request.

     (d) Opinion of Counsel for Highland Shareholders, Highland and/or Tianyuan.
     ChinaNet  shall have  received an opinion dated the Closing Date of counsel
     for Highland Shareholders,  Highland and/or Tianyuan, in form and substance

                                       10
<PAGE>

     reasonably  satisfactory  to  ChinaNet  and its  counsel  relating  to such
     matters  as are  customarily  delivered  in  connection  with  an  Exchange
     transaction.

     (e) Consents.  ChinaNet shall have obtained the consent or approval of each
     person whose consent or approval  shall be required in connection  with the
     transactions contemplated hereby under any loan or credit agreement,  note,
     mortgage,  indenture, lease or other agreement or instrument,  except those
     for which failure to obtain such  consents and approvals  would not, in the
     reasonable  opinion of ChinaNet,  individually or in the aggregate,  have a
     material adverse effect on Highland  Shares,  Highland and its subsidiaries
     and  related  entities  taken  as a  whole  upon  the  consummation  of the
     transactions contemplated hereby.

     (f)  Highland  Review.  ChinaNet  shall have  completed  to its  reasonable
     satisfaction  a review of the business,  operations,  finances,  assets and
     liabilities  of  Highland  and  shall not have  determined  that any of the
     representations  or warranties of Highland  Shareholders  contained  herein
     are, as of the date hereof or the Closing Date,  inaccurate in any material
     respect or that Highland is otherwise in violation of any of the provisions
     of this Agreement.

     (g)  Pending  Litigation.  There  shall  not be  any  litigation  or  other
     proceeding pending or threatened to restrain or invalidate the transactions
     contemplated by this Agreement,  which, in the sole reasonable  judgment of
     ChinaNet,  made in good faith,  would make the consummation of the Exchange
     imprudent.  In addition,  there shall not be any other  litigation or other
     proceeding  pending  or  threatened   against  Highland  Shares,   Highland
     Shareholders  and Highland,  the  consequences of which, in the judgment of
     ChinaNet, could be materially adverse to Highland Shares or Highland.

     5.3  Conditions  of  Obligations  of Highland.  The  obligation of Highland
Shareholders  to effect  the  Exchange  is subject  to the  satisfaction  of the
following conditions unless waived by Highland Shareholders:

     (a) Representations  and Warranties.  The representations and warranties of
     ChinaNet  set  forth in this  Agreement  shall be true and  correct  in all
     material  respects  as of the date of this  Agreement  and  (except  to the
     extent such representations  speak as of an earlier date) as of the Closing
     Date as though  made on and as of the  Closing  Date,  except as  otherwise
     contemplated  by this  Agreement,  and  Highland  Shareholders  shall  have
     received a certificate  signed on behalf of ChinaNet by the Chief Executive
     Officer to such effect.

     (b)  Performance of Obligations of ChinaNet.  ChinaNet shall have performed
     in all  material  respects all  obligations  required to be performed by it
     under  this  Agreement  at or  prior  to the  Closing  Date,  and  Highland
     Shareholders shall have received a certificate signed on behalf of ChinaNet
     by the President to such effect.

                                       11
<PAGE>

     (c)  Opinion of Counsel  for  ChinaNet.  Highland  Shareholders  shall have
     received an opinion dated the Closing Date of counsel for ChinaNet, in form
     and substance  reasonably  satisfactory to Highland  Shareholders and their
     counsel relating to such matters as are customarily delivered in connection
     with an Exchange transaction.

     (d) Closing  Documents.  Highland  Shareholders  shall have  received  such
     certificates   and  other   closing   documents  as  counsel  for  Highland
     Shareholders shall reasonably request.

     (e)  Consents.  Highland  Shareholders  shall have  obtained the consent or
     approval of each  person  whose  consent or  approval  shall be required in
     connection with the transactions contemplated hereby.

     (f)  Highland   Shareholders  Review.   Highland  Shareholders  shall  have
     completed  to  their  reasonable  satisfaction  a review  of the  business,
     operations, finances, assets and liabilities of ChinaNet and shall not have
     determined  that  any of the  representations  or  warranties  of  ChinaNet
     contained herein are, as of the date hereof or the Closing Date, inaccurate
     in any material  respect or that  ChinaNet is otherwise in violation of any
     of the provisions of this Agreement.

     (g)  Pending  Litigation.  There  shall  not be  any  litigation  or  other
     proceeding pending or threatened to restrain or invalidate the transactions
     contemplated by this Agreement,  which, in the sole reasonable  judgment of
     Highland  Shareholders,  made in good faith, would make the consummation of
     the  Exchange  imprudent.  In  addition,  there  shall  not  be  any  other
     litigation or other proceeding  pending or threatened  against ChinaNet the
     consequences of which, in the judgment of Highland  Shareholders,  could be
     materially adverse to ChinaNet.

                                   ARTICLE VI

                            TERMINATION AND AMENDMENT

     6.1 Termination.  This Agreement may be terminated at any time prior to the
Effective Time:

     (a) by mutual consent of ChinaNet and Highland Shareholders;

     (b) by  either  ChinaNet  or  Highland  Shareholders  if  there  has been a
     material breach of any representation,  warranty,  covenant or agreement on
     the part of the other set forth in this Agreement which breach has not been
     cured within 5 business days  following  receipt by the breaching  party of
     notice of such breach,  or if any permanent  injunction or other order of a
     court or other  competent  authority  preventing  the  consummation  of the
     Exchange shall have become final and non-appealable; or

                                       12
<PAGE>

     (c) by either  ChinaNet or Highland  Shareholders if the Exchange shall not
     have been consummated before December 20, 2004.

     6.2 Effect of Termination. In the event of termination of this Agreement by
either  Highland  Shareholders  or ChinaNet as  provided  in Section  6.1,  this
Agreement  shall  forthwith  become  void and  there  shall be no  liability  or
obligation  on the part of any  party  hereto.  In such  event,  all  costs  and
expenses  incurred  in  connection  with  this  Agreement  and the  transactions
contemplated hereby shall be paid by the party incurring such expenses.

     6.3 Amendment. This Agreement may not be amended except by an instrument in
writing signed on behalf of each of the parties hereto.

     6.4 Extension; Waiver. At any time prior to the Effective Time, the parties
hereto  may,  to the  extent  legally  allowed,  (a)  extend  the  time  for the
performance of any of the obligations or other acts of the other parties hereto,
(b) waive any  inaccuracies  in the  representations  and  warranties  contained
herein or in any document  delivered  pursuant  hereto and (c) waive  compliance
with any of the agreements or conditions  contained herein. Any agreement on the
part of a party  hereto to any such  extension  or waiver shall be valid only if
set forth in a written instrument signed on behalf of such party.

                                   ARTICLE VII

                               GENERAL PROVISIONS

     7.1 Survival of  Representations,  Warranties  and  Agreements.  All of the
representations,   warranties  and  agreements  in  this  Agreement  or  in  any
instrument delivered pursuant to this Agreement shall survive the Effective Time
for a period of two years from the date of this Agreement.

     7.2 Notices.  All notices and other  communications  hereunder  shall be in
writing and shall be deemed given if delivered personally,  telecopied (which is
confirmed) or mailed by registered or certified mail (return receipt  requested)
to the parties at the following  addresses (or at such other address for a party
as shall be specified by like notice):

         (a)      If to ChinaNet to

                  ChinaNet Holdings Inc.

                  Attention:  Anthony Garson, President

                                       13
<PAGE>

         (b)      if to Highland Shareholders, to

                  Highland Mining Inc.

                  Attention:  Zhi Wang,

     7.3 Interpretation. When a reference is made in this Agreement to Sections,
such  reference  shall  be to a  Section  of  this  Agreement  unless  otherwise
indicated.  The headings  contained in this Agreement are for reference purposes
only and  shall not  affect in any way the  meaning  or  interpretation  of this
Agreement.  Whenever the words "include",  "includes" or "including" are used in
this  Agreement,  they  shall be deemed  to be  followed  by the words  "without
limitation".  The phrase "made  available" in this Agreement shall mean that the
information  referred to has been made  available  if  requested by the party to
whom such information is to be made available.

     7.4   Counterparts.   This  Agreement  may  be  executed  in  two  or  more
counterparts,  all of which shall be considered  one and the same  agreement and
shall become effective when two or more counterparts have been signed by each of
the parties and delivered to the other  parties,  it being  understood  that all
parties need not sign the same counterpart.

     7.5 Entire Agreement;  No Third Party  Beneficiaries;  Rights of Ownership.
This Agreement  (including the documents and the instruments referred to herein)
constitutes  the  entire  agreement  and  supersedes  all prior  agreements  and
understandings,  both  written and oral,  among the parties  with respect to the
subject matter hereof,  and is not intended to confer upon any person other than
the parties hereto any rights or remedies hereunder.

     7.6  Governing  Law.  This  Agreement  shall be governed  and  construed in
accordance  with the laws of the State of Nevada without regard to principles of
conflicts of law. Each party hereby  irrevocably  submits to the jurisdiction of
any Nevada state court or any federal court in the State of Nevada in respect of
any suit, action or proceeding arising out of or relating to this Agreement, and
irrevocably  accept for themselves and in respect of their  property,  generally
and unconditionally, the jurisdiction of the aforesaid courts.

     7.7 No Remedy in Certain Circumstances.  Each party agrees that, should any
court or other competent  authority hold any provision of this Agreement or part
hereof or thereof to be null, void or unenforceable,  or order any party to take
any action inconsistent  herewith or not to take any action required herein, the
other party shall not be entitled to specific  performance  of such provision or
part  hereof or thereof or to any other  remedy,  including  but not  limited to
money  damages,  for breach hereof or thereof or of any other  provision of this
Agreement or part hereof or thereof as a result of such holding or order.

     7.8 Publicity. Except as otherwise required by law or the rules of the SEC,
so long as this  Agreement  is in  effect,  no party  shall  issue or cause  the

                                       14
<PAGE>

publication  of any press release or other public  announcement  with respect to
the transactions  contemplated by this Agreement  without the written consent of
the other party, which consent shall not be unreasonably withheld.

     7.9 Assignment.  Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any of the parties hereto (whether by
operation of law or otherwise)  without the prior  written  consent of the other
parties, except that ChinaNet may assign, in its sole discretion,  any or all of
its rights, interests and obligations hereunder to any direct or indirect wholly
owned subsidiary of such company, and Highland  Shareholders or each of them may
assign,  in their sole  discretion,  any or all if their  rights,  interests and
obligations  hereunder to a person or persons who are related to any of Highland
Shareholders.  Subject to the preceding sentence, this Agreement will be binding
upon,  inure to the  benefit  of and be  enforceable  by the  parties  and their
respective successors and assigns.

     IN WITNESS WHEREOF, this Agreement has been signed by the parties set forth
below as of the date set forth above.

                                    ChinaNet Holdings Inc.

                                    By: /s/ Maurice Tsakok
                                        ----------------------------------------
                                             Director

                                    Highland Shareholders

                                    By:
                                        ----------------------------------------

                                    By: ----------------------------------------

                                    By: ----------------------------------------

                                       15
<PAGE>

                                  Schedule "A"

                                       16
<PAGE>

<TABLE>
<CAPTION>

                              Additional Properties
                                                                        Minimum                         Need to be
                                                                        spending                        reimbursed to
Certificate     Name of deposit area            Area    Period of       required        budget for      State
number                                          (km2)   validity        annually        exploration     Investment      Title
<S>             <C>                             <C>     <C>             <C>             <C>             <C>             <C>

                Binda Lead and Antimony         5.15    2002.12.30-
5400000220548   Copper and Multi-metal                  2004.09.09      7,500.00                         42,350.00      Danlu

                Mining Area, Jiangda County             2002.12.30-
5400000220554   (with prospecting license)      4.37    2005.12.28      5,462.50        482,406.75      834.862.50      DanLu

5400000220552   Duoxiasongduo Copper Mining             2002.12.28-
                Area, Gongiue County (with      2.94    2005.12.28      3,675.00                        480,000.00      DanLu
                prospecting license)

                Ganzhongxiong Lead & Zine mine          2002.12.28-
5400000220549   (with prospecting license)      6.45    2005.12.28      8,062.50                          1,952.50      DanLu

                Gegongnong Gold(copper) deposit         2002.12.30
5400000220555   in Gongiue county, Tibet       37.39    2005.12.28     46,737.50                      2,390,687.50      DanLu

                GeXiong Niobium & Tantalum,             2002.09.10-
5400000230429   Jida Village, Basu county,      3.70    2004.09.10      4,625.00                                        Honglu
                Tibet (w prospecting license)

                Jiaduoling Iron Mining Area,            2002.12.30-
5400000220545   Jiangda County (exploitation   17.16    2005.12.28     21,450.00                         39,025.00      DanLu
                certificate is being applied)

                Jiama Copper, Lead, Mining
                Area line 16 to 40, Mozhugongka         2003.7-           585.13                          2,500.00      DanLu
5400000320024   County (with exploitation      0.468    2005.7

                Jiama Copper, Lead, Mining
                Area line 40 to 80, Mozhugongka         2003.7-        11,5613.75                     2,250,000.00      DanLu
5400000320025   County (with exploitation      0.929    2005.7

                Jiduipu Marble Mining Area,
                Renbu County, Tibet                     2003.06.12-
5400000330262   (with prospecting license)     10.30    2005.06.27      1,287.50                                        DanLu

                Kada Green Stone mine                   2003.09.05-
5400000340577   (prospecting license)           3.72    2005.09.17      4,650.00                                        DanLu

                La-Zi Zang Cr & Fe Mine                 2003.06.04-
5400000310244   in La-zi County of Tibet       35.92    2005.04.30      8,980.00                                        DanLu

                                                        2003.06.04-
5400000310242   Long-ren-la Fe Mine            46.66    2005.04.30     11,665.00                                        DanLu

                Malasongduo Copper Mining
                Area Chaya County (with                 2002.12.30-
5400000220553   prospecting license)            3.31    2005.12.28      4,137.50                        762,500.00      DanLu

                Mangzong Porphyritic Copper
                (Mo) Mining Area, Changdu               2002.08.01-
5400000220551   County(w prospecting license)   4.41    2005.08.01      5,512.50                      1,814,400.00      DanLu

                Meiduo Antimony Mining Area,
                Anduo County (w/ exploitation           2002.12-
5400000260068   certificate)                  1.3197    2004.12         1,649.63                      1,451,350.00      DanLu

                Nanyuela Lead & Zinc Mine               2002.12.30-
5400000220546   (with prospecting license)     13.22    2005.12.28      1,652.50                         24,675.00      DanLu

                Niangguchu Gold Mining Area
                Naidong County (with                    2002.12.30-
5400000220550   prospecting license)            1.12    2004.12.16      1,400.00        250,000.00      630,300.00      DanLu

                Nianggui Corundum Mining
                Area, Qushui County (with               2002.12.30-
5400000220540   prospecting license)            4.12    2005.12.30      5,150.00                        170,975.00      DanLu

                Panong Tantalum mine,                   2003.03.17-
5400000320003   (with prospecting license)      2.24    2004.03.17      2,800.00                                        Honglu

                Qinong Tantalum mine,                   2002.09.10-
5400000230428   (prospecting license)         118.10    2004.09.10    147,625.00                                        Honglu

                Xietongmen xiongcun gold
                deposit, Tibet (with                    2003.06.15-
5400000032070   prospecting license)           12.91    2005.06.15     16,137.50                                        Honglu

                Youzha Salt Mining Area,
                Gongjue County (with                    2002.12.28-
5400000220547   prospecting license)           12.92    2005.12.28     16,150.00                        696,250.00      DanLu

                Yugu Iridium & Osmium Mine
                Leiwugi County (with                    2002.12.30-
5400000220541   prospecting license)            5.51    2004.9.9        6,887.50                         12,525.00      DanLu

                Zhanaga Copper & Molybdenum
                Mining Area, Changdu County             2002.12.30-
5400000220543   (with prospecting license)      3.30    2005.12.28      4,125.00                        688,700.00      DanLu

                Zonglongge(zhongda) Uranium,
                Thonte, Brown Yttrium,                  2002.12.30-
5400000220544   Mining Area, Leiwugi County     6.40    2005.12.28      8,000.00                         12,500.00      DanLu
</TABLE>

                                       17
<PAGE>

Note:

1.   Honglu holds 100% of interest in properties #6 #19 #20 #21 and 65% of
     interest in all other properties of Danlu listed above. Honglu's 65%
     interest is evidenced in its corresponding title to and right in the
     exploration licenses covering those properties.
2.   Honglu's interest in the properties listed above is subject to and valid
     with minimum annual payment and minimum annual geologic or exploratory work
     in respect of each properties, to be completed pursuant to the relevant
     regulations of the Ministry of Land and Resources of China.
3.   Honglu's interest in any of the properties listed above cannot be
     transferred, assigned or old except with the consent of the party holding
     the balance of the rights in the properties, and further with the approval
     of the Department of Land and Resources of Tibet Autonomous Region, or the
     approval of the Ministry of Land and Resources of China if such interest is
     transferred to a foreign company or company with foreign investment.
4.   Where, in respect of any properties listed above, there has been any prior
     state investment or prior state financed geological work, the state
     investment or state input may need to be compensated on the basis of a
     valuation of the state investment or
      input, before any development, transfer, assignment or sale of the
     property may be approved by the Ministry of Land and Resources or the
     Department of Land and Resources of Tibet Autonomous Region, as the case
     may be.

                                       18
<PAGE>

                                  Schedule "B"

                                     Options

1.       ChinaNet granted on May 31, 2000 options to former directors of
         ChinaNet and consultants for the purchase of 5,000,000 shares of
         ChinaNet common stock exercisable on or before May 31, 2005 at an
         exercise price $0.40 per share.

2.       ChinaNet granted an option on September 11, 2003 to a director for the
         purchase of 1,000,000 shares of ChinaNet common stock exercisable on or
         before August 1, 2006 at an exercise price of $0.10 per share.

                                       19
<PAGE>

                                  Schedule "C"

                                Tianyuan Licenses

GRAPHICS OMITTED

                                       20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]