Document:

10.18 lease_agreement_Xiangrong- 21-2-06.pdf -- Converted by SECPublisher 4.0, created by BCL Technologies Inc., for SEC Filing

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Lease agreement

Lessor: Inner Mongolia Tehong Coal Group Co.,Ltd

Lessee: Inner Mongolia Xiangrong Commerce&Trade Co.,Ltd 

By friendly negotiation, both sides signed
agreement about house lease as follows: 

1. Lessor
lease house of floor1 and floor 2 in office building totaling 900m2 to lessee, which locates
No.39, Xinhua East Street, Hohhot City. 

2. Lessee
will use this leasing house as restaurant.

3. When
this house is used, lessee can not change structure of house, meanwhile
maintenance and repair of house should be in charged by lessee. All expense
occurred during operation should be bore by lessee.

4. Both
sides stipulate that lessor should consume in this restaurant, occurred expense
will be deducted from house rent and be calculated every year end.

5. House
rent negotiated by two sides is USD24390.24 per year.

6. When
calculated , if expense by lessor is more or less within 10% of house rent, it
will be regarded and treated as USD24390.24. Once expense is more than 10% , the
excess will be paid by cash. 

7. Rental
period will be 5 years from August 1, 2004 to July 30,2008. If to relet, it
should be negotiated 3 month advance expiration.

8. If there
is anything not clear, both sides will negotiate to solve.

	Lessor(stamp):

	Inner Mongolia Tehong Coal Group
      Co.,Ltd

	Date: July
  28,2004

Lessee(stamp):

Inner Mongolia Xiangrong
Commerce&Trade Co.,Ltd

	Date : July
  28,200410.19 (a) Investment Agreement in litai- Sep 18 2002-ENG.pdf -- Converted by SECPublisher 4.0, created by BCL Technologies Inc., for SEC Filing

Investment Agreement

According to Chinese Company�fs Law, by
discussion and negotiation, all shareholders willing to invest to set up company
limited, the following is agreement:

	1.   
        	The name
      of company applied to set up is intended to be Inner Mongolia Litai Coking
      Co., Ltd. 
	 
	2.   
        	The
      registered capital will be RMB10 million yuan. 
	 
	3.   
        	The main
      operation includes coal processing,production�Asales and transportation of chemical production,
      restaurant. 
	 
	4.   
        	name of
      shareholder�Ainvestment method�Ainvestment and proportion 
	 

	  Name of shareholder  
 
     	  Investment(RM10  
 
      thousand
      yuan)  	  Proportion (%)  
 	  Investment method 
  
 

	  Li Junyan  	  200  	  20  	  Cash  
	  Li Jianguang  	  200  	  20  	  Cash  
	  Inner    Mongolia  
 
      Tehong Coal
      Group  
  Co., Ltd   	  150  
 
 	  15  
 
 	  Cash  
 
 

	  Qu Puyi   	  150  	  15  	  Cash  
	  Ding Wenhua  	  100  	  10  	  Cash  
	  Yang Shengjie  	  75  	  7.5  	  Cash  
	  Zhang Lihua  	  75  	  7.5  	  Cash  
	  Wang Yun  	  50  	  5  	  Cash  

	5.      	Due to any reason, if established company can not meet
      shareholder�fs will, by negotiation and agreement, this company can be
      ceased registration of this company, hence all expense during
      establishment and registration of this company should be borne by
      shareholders according to it�fs investment proportion. 
	 

Signature of shareholders:

Li Jianguang, Qu Puyi, Inner Mongolia
Tehong Coal Group Co., Ltd(stamp), Zhang Lihua, Ding Wenhua, Wang Yun, Li
Junyan, Yang Shengjie

	Sep.18,200210.19(b) share exchange between Litia & Group 18-8-04-ENG.pdf -- Converted by SECPublisher 4.0, created by BCL Technologies Inc., for SEC Filing

     Share
Exchange Agreement 

Inner Mongolia Litai Coking Co.,
Ltd

Bargainer: Mr Li Jianguang

Alienee: Inner Mongolia Tehong Coal Group
Co., Ltd, Mr. Qu Puyi, Ms.Li Junyan

Mr Li Jianguang (bargainer) signs a
contract with alienees about transfer of shares counting for RMB 1,400,000 on
the basis of agreement of other shareholder.

1.     
 The transfer of shares is as
follows:

	  Alienee  	  Bargainer  	  Share of transfer(RMB Yuan)  
	  Inner Mongolia Tehong  
  Coal Group Co.,
      Ltd  	  Mr. Li Jianguang  
 	  500,000  
 

	  Mr. Qu Puyi  	  Mr. Li Jianguang  	  500,000  
	  Ms. Li Junyan  	  Mr. Li Jianguang  	  400,000  

	2.   
        	After transfer, the
      shareholders and shares in Inner Mongolia Litai Coking Co., Ltd is as
      follows: 
	 

	  Shareholder  	  Share(RMB Yuan)  	  Percent of capital  
	  Inner Mongolia Tehong  Coal Group
  Co.,Ltd  	  2,000,000  	  20%  

	  Ms.Li junyan  	  2,400,000  	  24%  
	  Mr. Qu puyi  	  2,000,000  	  20%  
	  Mr Ding Wenhua  	  1,000,000  	  10%  
	  Mr. Yang Shengjie  	  750,000  	  7.5%  
	  Mr Zhang lihua  	  750,000  	  7.5%  
	  Mr Li jianguang  	  600,000  	  6%  
	  Mr Wang Yun  	  500,000  	  5%  
	  Total  	  10,000,000  	 

 signatures: 

Bargainer: Mr Li
Jianguang  

Alienee: Inner Mongolia Tehong Coal Group
Co.,Ltd, Mr. Qu Puyi, Ms.Li Junyan

Aug. 18, 200410.20 (a) Goal & Responsibility Warrant- Laiyegou- UDATE.pdf -- Converted by SECPublisher 4.0, created by BCL Technologies Inc., for SEC Filing

Zhunger Local Coalmine to Accomplish
Mechanized Mining

Goal & Responsibility
Warrant

 

 

Zhunger County Coal Mining Industry
Administration Department

1

Goal and Rule instruct by Party A:

Zhunger County Coal Mining Industry
Administration Department

Goal and Rule obey and perform by Party B:

Laiyegou Coal Mine

To speed up the process of developing an
energy saving society, enhancing the mining technique, coal mining recovery rate
and the level of mining mechanization, as well as improving the mining safety
condition, preventing accidents including fire, flood, gas, coal ash and dust,
roof fall and the like, accomplishing the Inner Mongolia Autonomous Government internal affairs documents No.
[2005]209 and No. [2005] 210 and the
agreement signed between the city and county in respect to the confirmation of
the goal and responsibility warrant, the Zhunger Coal Safety Production Comprehensive Control Leader
Team entrusted the Zhunger Coal Mining Industry Administration Department to sign the agreement with the local coalmine enterprises in
respect to the goal and responsibility warrant.

	Goal:

By the end of 2005, the mining company
should enhance the current mining technique and the level of mining
mechanization as requested, delegate the design division to design and obtain
approval for its design, so that the coal mine design production capacity can
reach 600,00 tons per year, using mechanized
mining method by blasting down the roof mining technique to achieve 75% coal mining recovery rate at the mine-field
and 70% at the mine-well. Also, the company should select and assign a project
team to carry out the plan.

By Sep 30 2006, the mining company should complete reconstruction of its
pitshaft, tunnel (mine passageway), technician training and major equipment
selection and order.

By Dec 30, 2006, the mining company should complete construction of the
electric power substation two-circuit power
supply facility between the coalmine and
local area as well as the installation and debugging of the equipments for
underground-well.

By Sep 1, 2007, the mining company should achieve mining recovery rate as
designed and complete inspection and acceptance of the project work.

	Responsibility:

According to the requirement for mining
technical reform, realizing mining mechanization, by the end of 2005, if the mining
company cannot complete the procedure of delegating the design division to
design and receive approval for its design, the coalmine may be requested to
suspend production.

By Sep 30 2006, if the mining company cannot complete the reconstruction of
the pitshaft, tunnel (mine passageway), technician training and major equipment
selection and order, the coalmine may be requested to limited or suspend its
production.

2

By Sep 1, 2007, if the mining company cannot reform its mining technique,
realizing mining mechanization as requested and cannot achieve the mining
recovery rate as requested, the coalmine may not obtain explosives, power supply
and invoice; as well, the coalmine may be put on the coalmine shut down list for the year end 2007.

Other:

2 copies of this agreement were made, and
each party keeps one copy.

Part A: Zhunger County Coal Mining
Industry Administration Department

	(Stamp)

	Part B: Laiyegou Coal
  Mine

	(Stamp)

	Date: Oct 5,
  2005

310.20 (b) LaiYegou Reconstruction Plan-Project Design Approval- ENG.pdf -- Converted by SECPublisher 4.0, created by BCL Technologies Inc., for SEC Filing

	SECQ68 LaiYegou Reconstruction Plan-
      Project Design Approval –ENG

                             
      EerDouSi City Coal Bureau Document

                                             
      File No.: [2005]321

Approval for the Project Design of the Inner
Mongolia Zhunger County TeHong Coal Group, Ltd.- LaiYegou Coalmine
Reconstruction and Expansion Plan - Ratified by the EerDouSi City Coal
Bureau

To: Zhunger County Coal
Bureau

We have received Document No.: [2005]275
[the Project Design of the Inner Mongolia Zhunger County TeHong Coal Group, Ltd.- LaiYegou
Coalmine Reconstruction and Expansion Plan] submitted by you bureau. Verified by
our related department and specialist in respect to the initial design of the
reconstruction and expansion plan, we approved the follows:

	1.   
        	Agreed the coalmine production
      capacity increase to 600,00 tons per year. Mining Plan: first mining the
      coal bed 6-2#, the top layer of 4-1#, 4-2# upper level, and 4- 2#, using
      auxiliary horizontal mining.
      Coal Reserve: 27,185,000 tons;
      Recoverable Reserve: 11,374,000 tons, mining lifespan: 10.4 years.
    
	 
	2.   
        	Mining Certiciation No.:
      150000040899; Production Licese No.: X051003096; Coal-field Size:
      2.3033km2. 
	 
	3.   
        	Agreed the mining design plan.
      Using the existing primary and secondary adit and No.3 return air shaft,
      and employing the panel main road lay out. 
	 
	4.   
        	Agreed the designed enhancing
      transportation system: Main shaft using the “STJ800/2X40 conveyor belt” to
      convey, and main road using the “STJ88/40 belt” to convey, secondary
      conveyor using two sets of “WQC4J explosion prevention trackless plastic
      vehicle”, one set of “WQC3T explosion prevention trackless plastic
      vehicle”, two sets of “WRC20/2J explosion prevention trackless plastic
      vehicle” (for passenger transport), and one set of “EIMCO913IILC material
      fork lift truck”. 
	 
	5.   
        	Agreed the designed of using
      “trending towards blasting down the roof mining method”. Using “MG-250
      twin-roll coal mining machine” at the working face and ZH2200/17/22Z
      combinatory integral ceiling girder
      suspension hydraulic bracket at
      the working face roof. 
	 
	 	When handing over the production,
      one working face for the 6-2# coal bed ( No. 1 Panel) and digging two
      working faces 
	 
	6.   
        	Agreed the confirmed working
      surface for the mining transportation system. Employing two set of scraper
      conveyor SGB-630/150C for transportation, SZD- 630/75P reversed loader and
      SSD800/2 X 40kw flexible plastic belt conveyor at the groove. 
	 
	7.   
        	Agreed the designed of the
      coalmine ventilated system as centralized march-past: input air request at
      the mine: 42km2/s; using two sets of BK54-6-N019 axial-flow fan; motor
      power: 90kw. 
	 
	8.   
        	Agreed the designed for disaster
      prevention method: fire prevention method, coal bed self-ignite prevention
      method, dust and ash explosion prevention method, gas 
	 

1

	 	explosion prevention
      method, coalmine flooding prevention method, prevention method for roof,
      hoisting carrier, electric accidents. 
	 
	9.   
        	Agreed the designed and
      application of KJ83 safety supervision/control system and DDK-60
      telecommunication switch. 
	 
	10.   
        	Agreed the designed and
      equipment selection for sprinkling and fire prevention proposal.
  
	 
	11.   
        	Agreed the designed for
      surface production system, the overall plane layout and the prevention
      method for flooding and drainage of stagnant water. 
	 
	12.   
        	Agreed the designed for
      two-circuit power supply system, one circuit from the WuRiTuGaoLi 11okV
      Substation, and another circuit from the XinMu 110kV 
	 
	 	Substation.
  
	 
	13.   
        	Agreed the designed for
      surface building and the proposals for drainage of stagnant water,
      heating, ventilation, heat supply service. 
	 
	14.   
        	The project
      occupational safety, sanitation, environmental protection and the like
      should accord with the related department requirement and
      suggestion. 
	 
	15.   
        	During the
      construction, it should constantly supervising and evaluating the gas
      contain, ash and dust explosivity, coal pyrophorisity, coalmine water
      inflow and the like, and amend the related design based on the result of
      evaluation. 
	 
	16.   
        	Project investment
      total capital request: 84896200 RMB, tonnish coal investment total:
      1414900 RMB 
	 
	17.   
        	When the project
      completes, it will be examined and accepted by the City and County Coal
      Bureau. 
	 
	18.   
        	Additional
      questions: 
	 
	 	a)   
        	Designed reserve usage should be
      recalculated 
	 
	 	b)   
        	Section plan should be added to
      the Pitshaft crossing-point 
	 
	 	c)   
        	Explosion amount of the “Blasting
      down of the roof coal” request further testing and proving before
      mining. 
	 
	 	d)   
        	Additional mining plan should be
      added to the mining sequence for theUpper and lower coal bed.

	 
	 	e)   
        	The existing mining condition
      should be added. 
	 
	 	f)   
        	Pitshaft pass through the goaf
      should be added the management method for the goaf. 
	 
	 	g)   
        	When mining the top level, safety
      operation rules should be compiled before mining and it should be approved
      by the related department. 
	 
	 	h)   
        	Selection for the equipment of
      pit prop needed further testing and confirmation. 
	 
	 	The above issue should
      be supervising by the County Coal Bureau. 
	 
	 	Dec 8, 2005
  
	 
	 	Subject: verified and
      approval for the coalmine reconstruction and expansion plan Copy to:
      Autonomous Region Coal Industry Bureau, Inner Mongolia Coal Safety
      Supervision Bureau BaoTu Substation, Director of the City Bureau, office
      filing 
	 
	 	EerDouSi City Coal
      Bureau office 
	 	Copy date: EerDouSi
      City Coal Bureau [12 copies] 
	 

2

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