Document:

Exhibit
      10.45

     

    Equity
      Transfer Heads of Agreement

     

    This
      Equity Transfer Heads of Agreement sets out the proposed terms for a purchase
      by
      China Global Mining Resources Limited or its nominee (the “Purchaser”)
      of 95%
      of the equity in Yun County Changjiang Mining Company Limited [   ]
      (the “Company”)
      (the
“Transaction”).

     

      
        

      

    

    1 The
      Company

     

    
      	 	
              (a)

            	
              The
                Company is a limited liability company registered at Taogouhe Village,
                Baisangguan Town, Yun County, Hubei, People’s Republic of China
                (“PRC”).

            

    

     

    
      	 	
              (b)

            	
              The
                registered capital of the Company is RMB 0.5 million. The registered
                capital is fully paid up and not pledged or subject to a court freezing
                order or claims or disputes.

            

    

     

    
      	 	
              (c)

            	
              The
                Company holds a licence to explore for iron ore in Yun County, Hubei
                Province (“Mining Site”
                or the “Mine”),
                which licence is described in Schedule 1 (“Licence”).

            

    

     

    
      
2 Purchaser

     

    The
      Purchaser is China Global Mining Resources Limited with its registered address
      at P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British
      Virgin Islands or its nominee.

     

    
      
3 Selling
      Equityholders

     

    The
      selling equityholders of the Company (“Selling
      Equityholders”)
      the
      percentage of equity in the registered capital of the Company held by each
      Selling Equityholder; the equity that each Selling Equityholder is selling
      to
      the Purchaser; and the equity to be held by the Selling Equityholder at
      completion of the Transaction is set out below:

     

    
      	
              Selling
                Equityholder

            	
               

            	
              Percentage of 

              Equity Held

            	
               

            	
              Percentage 

              of Equity to 

              be Sold to 

              the 

              Purchaser

            	
               

            	
              Percentage of 

              Equity to be 

              held following 

              Completion of 

              the Transaction

            	
               

            
	
              Lu
                Benzhao [    ] of Room 204, No. 17 Liyuan Village,
                Huashan District, Maanshan, Anhui with PRC identity card number
                340505195112240018

            	 	 	
              48

              
              

            	
              %

              
              

            	 	
              43

              
              

            	
              %

              
              

            	 	
              5

              
              

            	
              %

              
              

            
	
              Lu
                Nan [    ] of Room 204, No. 17 Liyuan Village, Huashan
                District, Maanshan, Anhui with PRC identity card number
                340503198603090238

            	 	 	
              42

              
              

            	
              %

              
              

            	 	
              42

              
              

            	
              %

              
              

            	 	
              0

              
              

            	
              %

              
              

            
	
              Jin
                Yao Hui [    ] of Room 401, Unit 1, Tower 4, Phase 11,
                Qingshan Street, Xinwu District, Wuhu, Anhui with PRC identity card
                number
                340204198403130717

            	 	 	
              10

              
              

            	
              %

              
              

            	 	
              10

              
              

            	
              %

              
              

            	 	
              0

              
              

            	
              %

              
              

            

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      
4
 Transaction

     

    The
      Purchaser shall purchase 95% of the equity in the Company by purchasing 43%
      from
      Lu Benzhao [   ] (“Mr
      Lu”),
      42%
      from Lu Nan [   ] and 10% from J in Yao Hui [   ]. The price
      to be paid by the Purchaser to the Selling Equityholders for 95% of the equity
      in the Company shall be USD 57,000,000 or its RMB equivalent (“Purchase
      Price”),
      of
      which not more than USD 15,000,000 shall be paid in cash and the balance in
      shares in a listed company as shall be determined by the parties. The Purchase
      Price shall be reduced by the amount to be paid to Mr Lu Benzhao pursuant to
      the
      MSC (as defined below in clause 13). Each Selling Equityholder shall be paid
      that proportion of the Purchase Price which represents their proportion of
      equityholding in the Company. Upon completion of the Transaction, the Company
      shall be converted into a sino-foreign cooperative joint venture with registered
      capital of 95% being held by the Purchaser and 5% being held by Mr Lu
      Benzhao.

     

    
      
5 Due
      Diligence and Legal Documentation

     

    
      	 	
              (a)

            	
              The
                Selling Equityholders shall at all times provide the Purchaser, its
                representatives and professional advisers with access to the Company’s
                premises, the Company’s documents and the Mining Site at all reasonable
                times in order to conduct due diligence and the Selling Equityholders
                shall keep the Purchaser promptly informed of all matters regarding
                the
                Company, the Mining Site and the application for a mining licence
                that
                covers the area covered by the
                Licence.

            

    

     

    
      	 	
              (b)

            	
              The
                Purchaser and the Selling Equityholders shall use their best endeavours
                to
                negotiate and execute the following documents in form and substance
                satisfactory to the Purchaser:

            

    

     

    
      	 	
              (i)

            	
              equity
                transfer agreement (“Equity
                Transfer Agreement”);
                

            

    

     

    
      	 	
              (ii)

            	
              joint
                venture contract;

            

    

     

    
      	 	
              (iii)

            	
              articles
                of association;

            

    

     

    
      	 	
              (iv)

            	
              management
                services contract; and

            

    

     

    
      	 	
              (v)

            	
              such
                other transaction documents as the Purchaser may in its sole discretion
                require,

            

    

     

    (collectively,
      the “Definitive
      Documents”).

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      
6 Loan
      for Acquisition of a Licence to Mine at the Mine Site

     

    
      	 	
              (a)

            	
              In
                consideration for the Selling Equityholders entering into this Equity
                Transfer Heads of Agreement and if the Selling Equityholders and
                the
                Purchaser execute an agreement for the exclusive supply of iron ore
                from
                the Mine to the Purchaser (“Exclusive
                Supply Agreement”)
                on terms satisfactory to the Purchaser, the Purchaser shall arrange
                for
                the Company to receive a loan. The value of the loan shall be calculated
                on the basis of RMB2 per tonne of iron ore that constitutes the reserve
                at
                the Mine Site as certified by an internationally recognised mining
                consultant, subject to such loan never being more than RMB 1.2 billion
                (“Licence
                Loan”)
                and on terms and conditions to be agreed. Both the Selling Equityholders
                and the Purchaser acknowledge that the Licence Loan must be used
                for the
                sole purpose of paying fees for the acquisition of a licence to mine
                at
                the Mine Site.

            

    

     

    
      	 	
              (b)

            	
              The
                Company shall open a new bank account to receive the Licence Loan
                funds
                (“Licence Loan Bank
                Account”).
                Mr Lu Benzhao and a representative of the Purchaser will be appointed
                joint signatories of the Bank Account, such that the Licence Loan
                Bank
                Account may not be operated without obtaining the signature of Lu
                Benzhao
                and the Purchaser’s representative.

            

    

     

    
      	 	
              (c)

            	
              If
                the Purchaser is not registered as a 95% holder of registered capital
                in
                the Company prior to receipt of the Licence Loan amount in the Licence
                Loan Bank Account, then the Selling Equityholders shall procure that
                the
                Company restructure its board of directors with five (5) members
                and that
                four (4) members be nominated by the Purchaser and one (1) member
                be
                appointed by the Selling Equityholders. One (1) of the four (4) members
                to
                be nominated by the Purchaser shall also be appointed as the Chairman
                and
                Legal Representative of the Company and shall hold the Company chop.
                The
                Selling Equityholders and the Company undertake to prepare, sign,
                file or
                otherwise all documents necessary to effect the formal appointment
                and
                registration of such directors in accordance with PRC laws and
                regulations.

            

    

     

    
      
7
 Loan

     

    
      	 	
              (a)

            	
              In
                consideration for the Selling Equityholders entering into this Equity
                Transfer Heads of Agreement, the Purchaser shall arrange for the
                Company
                to receive a loan on or before 30 June 2007. The value of the loan
                shall
                be USD 10 million (“Loan”)
                and the Selling Equityholders shall pledge their registered capital
                in the
                Company to the Purchaser (“Security”).

            

    

     

    
      	 	
              (b)

            	
              The
                Company shall open a new bank account to receive the Loan funds
                (“Bank Account”).
                Mr Lu Benzhao and a representative of the Purchaser will be appointed
                joint signatories of the Bank Account, such that the Bank Account
                may not
                be operated without obtaining the signature of Lu Benzhao and the
                Purchaser’s representative.

            

    

     

    
      	 	
              (c)

            	
              The
                Selling Equityholders and the Company shall be responsible for and
                cooperate with the Purchaser to obtain registration of the Loan and
                the
                Security with all necessary PRC government
                authorities.

            

    

     

    
      	 	
              (d)

            	
              Upon
                completion of the Transaction, the Purchaser may, in its sole discretion,
                elect to set-off the Loan against the Purchase Price such that the
                Purchase Price is reduced by the amount of the
                Loan.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      
8
 Exclusivity

     

    
      	 	
              (a)

            	
              In
                consideration of the Purchaser entering into this Equity Transfer
                Heads of
                Agreement, the Selling Equityholders shall not, and shall procure
                that
                their affiliates shall not, from the date of signing this Equity
                Transfer
                Heads of Agreement and 3 May 2012:

            

    

     

    
      	 	
              (i)

            	
              solicit
                offers from;

            

    

     

    
      	 	
              (ii)

            	
              negotiate
                or hold discussions with; or

            

    

     

    
      	 	
              (iii)

            	
              enter
                into any agreement or arrangement
                with,

            

    

     

    any
      person other than the Purchaser:

     

    
      	 	
              (i)

            	
              to
                sell or transfer or encumber any part of their equity interest in
                the
                registered capital of the Company;
                or

            

    

     

    
      	 	
              (ii)

            	
              to
                sell or transfer or lease any assets owned or operated by the Selling
                Equityholders in connection with the Mining Sites, including the
                Licences;
                or

            

    

     

    
      	 	
              (iii)

            	
              to
                borrow, exchange for value, receive as a gift, or otherwise, any
                amount
                that is applied to, received or used in connection with the Mines
                or the
                Licences.

            

    

     

    
      	 	
              (b)

            	
              In
                consideration of the Purchaser entering into this Equity Transfer
                Heads of
                Agreement, the Selling Equityholder shall not, and shall procure
                that
                their affiliates shall not, from the date of signing this Equity
                Transfer
                Heads of Agreement and 3 May 2012, develop, finance, or mine at the
                Mine
                Site or sell, gift, or exchange for value any product derived from
                the
                Mine Site, without the consent of the
                Purchaser.

            

    

     

    
      
9 Undertakings

     

    9.1 Undertakings
      by the Selling Equityholders

     

    The
      Selling Equityholders jointly and severally undertake to the Purchaser that
      each
      shall:

     

    
      	 	
              (a)

            	
              use
                their best endeavours to negotiate and execute the Definitive
                Documents;

            

    

     

    
      	 	
              (b)

            	
              provide
                the Purchaser, its representatives and professional advisers with
                access
                to the Company’s premises, the Company’s documents and the Mining Site at
                all reasonable times in order to conduct due diligence and keep the
                Purchaser promptly informed of all matters regarding the Company,
                the
                Mining Site and the application for a licence to mine at the Mine
                Site;

            

    

     

    
      	 	
              (c)

            	
              rectify
                any irregularities in the corporate existence of the Company and
                obtain
                any approvals, licences, consents, registrations or otherwise that
                the
                Purchaser may, in its sole discretion, require the Selling Equityholder
                or
                the Company to obtain in connection with the
                Transaction;

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	 	
              (d)

            	
              pay
                any amounts owing in respect of the Licences and perfect any
                irregularities in the Company’s title to the Exploration Licence held and
                obtain any licence, including without limitation a licence to mine
                at the
                Mine Site (which hereinafter shall also be referred to as a “Licence”)
                and any environmental licences, necessary or required by the Company,
                in
                the Purchaser’s sole discretion, to exploit the Mine Site for a period of
                no less than 3 years; and

            

    

     

    
      	 	
              (e)

            	
              execute
                an agreement for the exclusive supply of iron ore from the Mines
                to the
                Purchaser (“Exclusive Supply Agreement”) on terms satisfactory to the
                Purchaser

            

    

     

    9.2 Undertakings
      by the Purchaser

     

    The
      Purchaser undertakes to the Selling Equityholders that it shall:

     

    
      	 	
              (a)

            	
              use
                its best endeavours to negotiate and execute the Definitive Documents;
                and

            

    

     

    
      	 	
              (b)

            	
              execute
                the Exclusive Supply Agreement on terms satisfactory to the
                Purchaser.

            

    

     

    
      
10
 Damages

     

    
      	 	
              (a)

            	
              Following
                receipt by the Company of the Loan or contribution by the Purchaser
                of USD
                15,000,000 to the registered capital of Maanshan Global Mining Resources
                Limited [   ] if the Selling Equityholders breach any of their
                obligations under this Equity Transfer Heads of Agreement, the Selling
                Equityholders shall jointly and severally be liable
                to:

            

    

     

    
      	 	
              (i)

            	
              repay
                the Loan in accordance with its
                terms;

            

    

     

    
      	 	
              (ii)

            	
              repay
                the Licence Loan in accordance with its terms;
                and

            

    

     

    
      	 	
              (iii)

            	
              pay
                all direct and indirect costs incurred by the Purchaser in connection
                with
                the Transaction including, without limitation, all legal, accounting,
                finance, tax and technical mining advisor
                fees.

            

    

     

    
      	 	
              (b)

            	
              Following
                receipt by the Company of the Loan or contribution by the Purchaser
                of USD
                15,000,000 to the registered capital of Maanshan Global Mining Resources
                Limited [   ] and in the event that the Selling
                Equityholders:

            

    

     

    
      	 	
              (i)

            	
              breach
                clause 8 (“Exclusivity”) of this Equity Transfer Heads of Agreement;
                or

            

    

     

    
      	 	
              (ii)

            	
              breach
                clause 9.1(e) (“Exclusive Supply Agreement”) of this Equity Transfer Heads
                of Agreement; or

            

    

     

    
      	 	
              (iii)

            	
              breach
                the Exclusive Supply Agreement; or

            

    

     

    
      	 	
              (iv)

            	
              do
                not own or cease to own the equity in the Company;
                or

            

    

     

    
      	 	
              (v)

            	
              do
                not own or cease to own the Mine Site or the Licences;
                or

            

    

     

    
      	 	
              (vi)

            	
              cease
                business at the Mine Site or cease business or wind-up or deregister
                the
                Company; or

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	 	
              (vii)

            	
              take
                any action or fail to take any action that prevents the Selling
                Equityholders and/or the Purchaser from entering into the Definitive
                Documents or completing the Transaction contemplated by this Equity
                Transfer Heads of Agreement,

            

    

     

    then
      the
      Selling Equityholders shall jointly and severally be liable to:

     

    
      	 	
              (A)

            	
              repay
                the Loan in accordance with its
                terms;

            

    

     

    
      	 	
              (B)

            	
              repay
                the Licence Loan in accordance with its terms;
                and

            

    

     

    
      	 	
              (C)

            	
              pay
                to the Purchaser an amount of USD 27,500,000 (or its RMB equivalent)
                as
                liquidated damages (“Liquidated
                Damages”).

            

    

     

    The
      Liquidated Damages are a genuine pre-estimate of the Purchaser’s loss. Any
      amount payable by the Selling Equityholders pursuant to this clause 10(b)(B)
      constitutes liquidated damages only. It shall not affect the validity of other
      provisions in this Equity Transfer Heads of Agreement or any other remedies
      that
      the Purchaser may have against the Selling Equityholders for enforcement of
      this
      Equity Transfer Heads of Agreement.

     

    
      
11 Conditions
      Precedent

     

    Conditions
      precedent to completion of the Transaction and payment of the Purchase Price
      in
      the Equity Transfer Agreement shall include (but not be limited to) the
      following:

     

    
      	 	
              (a)

            	
              The
                Company has been duly incorporated with fully paid up registered
                capital;

            

    

     

    
      	 	
              (b)

            	
              The
                Company and the Selling Equityholders have fully cooperated with
                the
                Purchaser, its representatives and professional advisers to assist
                the
                Purchaser to conduct its (i) technical mining due diligence, (ii)
                financial due diligence, (iii) legal due diligence and (iv) commercial
                due
                diligence in respect of the Company and its rights to explore and
                exploit
                the Mining Site and, in each case, there is a successful completion
                of
                such due diligence and the results of which shall be satisfactory
                to the
                Purchaser;

            

    

     

    
      	 	
              (c)

            	
              The
                execution of the Definitive Documents in form and substance satisfactory
                to the Purchaser.

            

    

     

    
      	 	
              (d)

            	
              Execution
                of a business plan between the Purchaser and Mr Lu regarding the
                Company’s
                future operations, including, without limitation, a plan for future
                capitalisation of the Company;

            

    

     

    
      	 	
              (e)

            	
              Approval
                by the board of directors of the
                Purchaser;

            

    

     

    
      	 	
              (f)

            	
              All
                necessary corporate approvals and consents having been obtained,
                including
                those of the Company’s board of directors and each of the Selling
                Equityholders waiving their pre-emptive rights to purchase each other’s
                equity interest in the Company;

            

    

     

    
      	 	
              (g)

            	
              All
                Chinese government approvals, registrations, filings, consents and
                permits
                required for entry into the Definitive Documents, completion of the
                Transactions contemplated by the Definitive Documents, transfer of
                the
                Licences, exploration and mining at the Mine Site, and the entry
                into,
                enforceability and performance of the Definitive Documents shall
                have been
                obtained and shall be in full force and effect, including without
                limitation, any environmental or mining approvals or
                licences;

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	 	
              (h)

            	
              The
                Company holds a valid, effective and fully paid licence to explore
                and
                mine iron ore at the Mine Site, subject to such Licence being renewed
                and/or expanded, for a period of no less than 3
                years;

            

    

     

    
      	 	
              (i)

            	
              An
                approval letter having been issued indicating that the Purchaser
                has
                received approval to own 95% of the registered capital of the
                Company;

            

    

     

    
      	 	
              (j)
                

            	
              A
                business licence having been issued indicating that the Purchaser
                is the
                registered owner of 95% of the registered capital of the Company
                and that
                the Company’s business licence has a business scope satisfactory to the
                Purchaser, in its sole discretion;

            

    

     

    
      	 	
              (k)

            	
              Receipt
                of a technical mining report issued by an internationally recognised
                mining consultant indicating that the iron ore reserves at the Mine
                Site
                are no less than 600 million metric tonnes and that the iron ore
                reserves
                held at the processing facility are no less than 200 million metric
                tonnes;

            

    

     

    
      	 	
              (l)

            	
              Issue
                of a valuation report by the Company prepared by a PRC registered
                valuation firm indicating that the Company’s valuation is no more than the
                Purchase Price;

            

    

     

    
      	 	
              (m)

            	
              Evidence
                that all taxes and fees incurred in connection with the Licence and
                operation of the Mine Site have been duly paid as at the date of
                completion of the Transaction;

            

    

     

    
      	 	
              (n)

            	
              Evidence
                that the Company has good title to all buildings used in connection
                with
                the operation of the Mine Site and the processing of the iron ore
                and has
                obtained the consent of any landlord to the assignment of any leased
                premises;

            

    

     

    
      	 	
              (o)

            	
              Evidence
                that the Company has good title to all land used in connection with
                the
                operation of the Mine Site and the processing of iron ore or has
                obtained
                the consent of any landlord to the assignment of any leased
                premises;

            

    

     

    
      	 	
              (p)

            	
              Evidence
                that all loans between the Company and any other third party have
                been
                unwound;

            

    

     

    
      	 	
              (q)

            	
              Receipt
                of a copy of each of the Selling Equityholders PRC identity
                cards;

            

    

     

    
      	 	
              (r)

            	
              There
                being no material adverse change in the financial condition or business
                prospects of the Company or the Mine Site or the Licences or the
                estimated
                iron ore reserves of the Mining Site since the conclusion of the
                technical, financial, legal and commercial due diligence;
                and

            

    

     

    
      	 	
              (s)

            	
              Other
                conditions precedent to be determined following the Purchaser’s due
                diligence.

            

    

     

    
      
12
 Warranties

     

    The
      Selling Equityholders will provide Warranties in the Equity Transfer Agreement
      to the Purchaser that shall include, among others:

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	 	
              (a)

            	
              The
                Company is a corporation duly organized, validly existing and in
                good
                standing under the laws of the People’s Republic of China (“PRC”),
                with fully paid up registered capital and full corporate power and
                authority to own, lease and dispose of its assets and
                properties;

            

    

     

    
      	 	
              (b)

            	
              The
                identity of the Selling Equityholders and their existing
                equityholding;

            

    

     

    
      	 	
              (c)

            	
              The
                equity to be sold in connection with the Transaction being free from
                any
                security interest or third party
                claims;

            

    

     

    
      	 	
              (d)

            	
              The
                Company conducting business within its authorised business
                scope;

            

    

     

    
      	 	
              (e)

            	
              The
                Company having all consents, licences and approvals required to conduct
                its business, including but not limited to a current and valid Exploration
                Licence [   ] and Mining Licence [   ], which
                consents, licences and approvals are not subject to cancellation
                or third
                party claims as a result of this Transaction or
                otherwise;

            

    

     

    
      	 	
              (f)

            	
              The
                Company having passed its annual inspection for 2006 and any other
                inspections conducted by any governmental or administrative authority,
                including without limitation any regarding mine safety and environmental
                compliance;

            

    

     

    
      	 	
              (g)

            	
              There
                being no disputes, investigations, litigation, administrative proceedings,
                arbitration or mediation whether existing, threatened or potential
                with
                regard to the Company;

            

    

     

    
      	 	
              (h)

            	
              All
                documents provided by the Company and by the Selling Equityholders
                to the
                Purchaser is true, correct and not misleading in any
                respect;

            

    

     

    
      	 	
              (i)

            	
              The
                Company’s audited balance sheet as at 31 December 2006, represents a true
                and fair view of the Company’s accounts as at 31 December
                2006;

            

    

     

    
      	 	
              (j)

            	
              The
                Company has no undisclosed or contingent liabilities and no outstanding
                loans;

            

    

     

    
      	 	
              (k)

            	
              All
                tax liabilities incurred by the Company as at the date of completion
                of
                the Transaction have been paid in full or accrued sufficiently in
                the
                Company’s accounts;

            

    

     

    
      	 	
              (l)

            	
              Any
                resource tax and resource compensation incurred in connection with
                the
                Licence and operation of the Mine Site has been fully paid or accrued
                sufficiently in the Company’s accounts as at the date of completion of the
                Transaction;

            

    

     

    
      	 	
              (m)

            	
              The
                Company has good title to all buildings used in connection with the
                operation of the Mine Site or has obtained the consent of any landlord
                to
                the assignment of any leased
                premises;

            

    

     

    
      	 	
              (n)

            	
              The
                Company has good title to all land used in connection with the operation
                of the Mine Site or has obtained the consent of any landlord to the
                assignment of any leased premises;

            

    

     

    
      	 	
              (o)

            	
              All
                loans between the Company and any other third party have been
                unwound;

            

    

     

    
      	 	
              (p)

            	
              All
                environmental liabilities incurred by the Company have been paid
                in full
                or accrued sufficiently in the Company’s
                accounts;

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	 	
              (q)

            	
              All
                salaries, social security payments and any other employee benefits
                of the
                Company’s employees have been paid in full or accrued sufficiently in the
                Company’s accounts;

            

    

     

    
      	 	
              (r)

            	
              The
                Company has complied with all relevant laws and regulations, including
                without limitation, any laws regarding the environment, mine safety
                and
                worker safety;

            

    

     

    
      	 	
              (s)

            	
              Selling
                Equityholders are not aware of any matter which may result in the
                loss of
                the Licences or inability to renew the
                Licences;

            

    

     

    
      	 	
              (t)

            	
              Selling
                Equityholders have not given any guarantees to any Selling Equityholder
                or
                any third party; and

            

    

     

    
      	 	
              (u)

            	
              Other
                warranties that would be standard for a transaction of this type,
                as well
                as any others that may arise as a result of continuing due diligence
                by
                the Purchaser, its representatives and professional
                advisers.

            

    

     

    
      
13
 Indemnities

     

    The
      Selling Equityholders will jointly and severally provide specific indemnities
      to
      the Purchaser and the Company in the Equity Transfer Agreement in respect of
      the
      following liabilities or obligations incurred by the Company prior to the
      effective date of transfer of their equity interest to the
      Purchaser:

     

    
      	 	
              (a)

            	
              taxation;

            

    

     

    
      	 	
              (b)

            	
              environmental
                and land degradation;

            

    

     

    
      	 	
              (c)

            	
              mine
                and worker safety;

            

    

     

    
      	 	
              (d)

            	
              all
                liabilities that are not disclosed to the Purchaser by the Selling
                Equityholders in writing;

            

    

     

    
      	 	
              (e)

            	
              payment
                of amounts owing in connection with the operation of the Mine Sites,
                the
                Licences, leases, licences or land use
                rights

            

    

     

    
      	 	
              (f)

            	
              payment
                of employee salary and benefits;

            

    

     

    
      	 	
              (g)

            	
              breach
                of any laws or regulations, including without limitation, any with
                respect
                to environment, mine safety, worker safety and the built environment;
                and

            

    

     

    
      	 	
              (h)

            	
              other
                appropriate matters that may become evident in the course of continuing
                due diligence by the Purchaser, its representatives and professional
                advisers.

            

    

     

    
      
14 Management
      Services Contract

     

    Upon
      completion of the Transaction, the Purchaser will enter into a management
      services contract (“MSC”)
      with
      Mr Lu Benzhao or his nominee (“Consultant”).
      The
      key terms of the MSC are as follows:

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	 	
              (a)

            	
              Consultant
                shall provide operational management services to the
                Purchaser;

            

    

     

    
      	 	
              (b)

            	
              The
                term of the MSC shall be eight (8) years on a full time basis from
                completion of the Transaction; and

            

    

     

    
      	 	
              (c)

            	
              Consultant
                shall be responsible for any approvals required for its entry into
                the MSC
                and all taxes, whether inside or outside the PRC, associated with
                payment
                of the Consultant’s salary.

            

    

     

    
      
15
 Non-competition
      

     

    15.1
       Non-competition

     

    
      	 	
              (a)

            	
              Following
                execution of this Equity Transfer Heads of Agreement for a period
                of five
                (5) years following completion of the Transaction, the Selling
                Equityholders and their affiliates shall not directly or indirectly
                or in
                any manner whatsoever own or participate or be involved in any way
                in any
                business that explores, exploits, processes, purifies, transports,
                trades
                or deals in any other way in any mined product in the
                PRC.

            

    

     

    
      	 	
              (b)

            	
              Notwithstanding
                clause 15.1(a), the Selling Equityholdersmay hold a passive investment
                of
                less than 10% equity in listed companies that hold investments in
                any
                mined product and hold their investments in respect of Nanjing Sudan
                Mining Co., Ltd [   ] and assets from Maanshan Zhaoyuan Mining
                Co., Ltd [   ] and assets from Xiaonanshan Mining Co., Ltd
                [   ].

            

    

     

    15.2 Right
      of First Refusal

     

    Following
      execution of this Equity Transfer Heads of Agreement, the Selling Equityholders
      and their affiliates undertake to the Purchaser that if the Selling
      Equityholders or any other companies in which the Selling Equityholders directly
      or indirectly control 25% or more of the issued capital take(s) on or invest(s)
      in any businesses and/or activities, either on their own or in the form of
      a
      joint venture, that is engaged in the mining or processing of any mined product,
      then the Selling Equityholders undertake to grant and will use their best
      efforts to procure such companies grant to the Purchaser a right of first
      refusal to acquire such businesses from the Selling Equityholders or such
      companies, as the case may be.

     

    
      
16 Time
      Schedule

     

    It
      is the
      intention of the parties that, unless otherwise agreed among the Purchaser
      and
      the Selling Equityholders and the Company, due diligence shall take place from
      1
      July 2007 to 31 August 2007, that execution of the Definitive Documents and
      submission of the Definitive Documents to the PRC government authorities for
      approval and registration purposes shall take place before 30 September
      2007.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      
17 Language,
      Governing Law and Dispute Resolution

     

    17.1 Language

     

    This
      Equity Transfer Heads of Agreement and the Definitive Documents shall be
      prepared in English and Chinese, and both languages shall be of equal
      validity.

     

    17.2 Governing
      Law

     

    This
      Equity Transfer Heads of Agreement and the Definitive Documents shall be
      governed by PRC law.

     

    17.3 Dispute
      Resolution

     

    All
      disputes arising from this Equity Transfer Heads of Agreement and the Definitive
      Documents shall first be resolved by friendly consultation between the parties,
      failing which the disputes shall be submitted to arbitration at the Hong Kong
      International Arbitration Centre for arbitration.

     

    
      
18
 General

     

    18.1 General
      Warranties

     

    The
      Purchaser warrants to the Selling Equityholders that:

     

    
      	 	
              (a)

            	
              it
                has full legal right, power and authority to enter into this Equity
                Transfer Heads of Agreement and to perform and comply with its obligations
                thereunder; and

            

    

     

    
      	 	
              (b)

            	
              it
                has in full force and effect the authorisations necessary for it
                to enter
                into this Equity and Assets Transfer Heads of Agreement;
                and

            

    

     

    
      	 	
              (c)

            	
              its
                obligations under this Equity Transfer Heads of Agreement are legal,
                valid
                and binding and are enforceable against it in accordance with its
                terms;
                and

            

    

     

    
      	 	
              (d)

            	
              it
                is duly incorporated or established and validly existing at its place
                of
                registration and its equity and assets are not pledged or subject
                to a
                court freezing order or claims and disputes;
                and

            

    

     

    
      	 	
              (e)

            	
              no
                litigation, arbitration or administrative proceeding is currently
                taking
                place or pending or threatened against it or its
                assets.

            

    

     

    The
      Selling Equityholders warrant to the Purchaser that:

     

    
      	 	
              (a)

            	
              each
                has full legal right, power and authority to enter into this Equity
                Transfer Heads of Agreement and to perform and comply with its obligations
                thereunder; and

            

    

     

    
      	 	
              (b)

            	
              their
                obligations under this Equity Transfer Heads of Agreement are legal,
                valid
                and binding and are enforceable against them in accordance with its
                terms;
                and

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              no
                litigation, arbitration or administrative proceeding is currently
                taking
                place or pending or threatened against them or their
                assets.

            

    

     

    18.2 Successors
      and assignment

     

    The
      Purchaser is entitled to assign and/or nominate any of its affiliates to be
      a
      party to this Equity Transfer Heads of Agreement or any of the agreements
      referred to in clause 5.

     

    The
      Selling Equityholders may not assign or otherwise dispose of their rights or
      obligations under this Equity Transfer Heads of Agreement without the prior
      written consent of the Purchaser.

     

    18.3 No
      partnership or agency

     

    Nothing
      in this Equity Transfer Heads of Agreement shall create, or be deemed to create,
      a partnership between the parties or a relationship of agent and principal
      between the parties.

     

    18.4 Entire
      agreement

     

    This
      Equity Transfer Heads of Agreement contains the entire agreement between the
      parties with respect to its subject matter, supersedes all previous agreements
      and understandings between the parties.

     

    18.5 Variation
      and waiver

     

    Unless
      this Equity Transfer Heads of Agreement expressly states otherwise, a provision
      of this Equity Transfer Heads of Agreement, or right created under it, may
      not
      be waived or varied except in writing signed by the party or parties to be
      bound. Any waiver by the Purchaser of a breach of any provision of this Equity
      Transfer Heads of Agreement shall not be considered as a waiver of any
      subsequent breach of the same or any other provision.

     

    18.6 Copies

     

    This
      Equity and Assets Transfer Heads of Agreement shall be executed in six copies
      in
      English and six copies in Chinese.

     

    18.7 Foreign
      Exchange

     

    Where
      any
      amounts are to be converted between USD and RMB, the relevant exchange rate
      shall be the middle rate published by the People’s Bank of China on the relevant
      date.

     

    18.8 Partial
      invalidity

     

    If
      at any
      time any provision of this Equity Transfer Heads of Agreement is or becomes
      illegal, invalid or unenforceable in any respect in any jurisdiction, the
      remaining provisions of this Equity Transfer Heads of Agreement shall not in
      any
      way be affected or impaired thereby.

     

    18.9 Amendment

     

    This
      Equity Transfer Heads of Agreement may only be amended in writing signed by
      the
      parties.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    18.10 Binding
      effect

     

    This
      Equity Transfer Heads of Agreement shall be binding on all the parties from
      the
      date first set out on the execution page.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	
              Executed
                on 4 May 2007 by the following

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              EXECUTED
                by CHINA GLOBAL

            	
              )

            	
               

            	
               

            
	
              MINING
                RESOURCES LIMITED

            	
              )

            	
               

            	
               

            
	
              by
                its authorised director:

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )
                

            	
               

            	
              For
                and on behalf of

            
	
              Signature
                of director

            	
              )
                

            	
               

            	
              CHINA
                GLOBAL MINING RESOURCES LIMITED

            
	
               

            	
              )
                

            	
               

            	
              [   ]

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )
                

            	
               

            	
              /s/

            
	
              Name
                of director (block letters)

            	
              )
                

            	
               

            	
              Authorised
                Signature(s)

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
              SIGNED
                by LU, BENZHAO [   ]:

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
              /s/

            	
              )

            	
               

            	
              /s/

            
	
              Signature

            	
              )

            	
               

            	
              Witness
                Signature

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
              Print
                Name

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              SIGNED
                by Lu Nan [   ]

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
              /s/

            	
              )

            	
               

            	
               

            
	
              Signature

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
              Print
                Name

            	
              )

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              SIGNED
                by Jin Yao Hui [   ]

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
              /s/

            	
              )

            	
               

            	
               

            
	
              Signature

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
               

            	
              )

            	
               

            	
               

            
	
              Print
                Name

            	
              )

            	
               

            	 

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1 

     

    Exploration
      Licence

    

      
        	 	
                Exploration
                  Licence

              
	
                Licence
                  number

              	
                4200000630337

              
	 	 
	
                Licence
                  holder

              	
                Hubei
                  Yun County Changjiang Mining Company Limited

              
	 	 
	
                Project
                  name

              	
                General
                  exploration of Laowan Iron Mine in Yun County, Hubei
                  Province

              
	 	 
	
                Geological
                  location

              	
                Yun
                  County, Hubei Province

              
	 	 
	
                Plot
                  Number

              	
                I49E019012,
                  I49E019013

              
	 	 
	
                Exploration
                  area

              	
                17.78
                  km2

              
	 	 
	
                Exploration
                  unit

              	
                No.
                  4 Geological Team of Henan Coloured Metal Geological Mining
                  Bureau

              
	 	 
	
                Licence
                  period

              	
                26
                  Oct 2006 to 25 Oct 2007

              

      

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2 

     

    Joint
      Venture Contract

    

    
      	
              1.
                Registered Capital

               

            	
              Within
                30 days of the issue of the Company’s amended business licence evidencing
                that it is registered as a sino-foreign joint venture, the Purchaser
                shall
                contribute RMB100 million and Mr Lu shall contribute RMB5,000,000
                to the
                registered capital of the Company.

               

            
	
              2.
                Board of Directors

               

            	
              (a) The
                Board of Directors of the Company (the “Board”)
                shall be comprised of 5 directors. Of these 5 directors, 4 directors
                are
                to be appointed by the Purchaser (one of whom shall be appointed
                as
                Chairman) and 1 director is to be nominated by the Mr Lu
                Benzhao.

               

              (b) All
                Board resolutions other than those that are required under PRC law
                to be
                passed unanimously shall be passed by a simple majority of the
                directors.

               

              (c) Quorum
                for meetings of the Board shall be two-thirds of all
                directors.

               

            
	
              3.
                Disposal of Equity

               

            	
              Pre-emptive
                rights shall apply to equityholders seeking to dispose of equity
                to third
                parties.

               

              Mr
                Lu shall waive his pre-emptive rights against the Purchaser with
                respect
                to the transfer of equity by the Purchaser to its affiliate.

               

            
	
              4.
                Future Financing 

               

            	
              (a) Additional
                Capital Increase by both Parties

               

              If
                the Company requires capital, then the parties shall contribute capital
                to
                the Company in proportion to their respective equityholdings in the
                Company. However, if either party is not in a position or not willing
                to
                make such additional capital contribution, the party that does not
                contribute additional capital shall have their equityholding diluted
                and
                each party shall take all steps necessary to ensure that the adjustment
                and dilution are approved and registered with the relevant government
                authorities.

               

              (b) Bank
                Loans and Guarantees

               

              If
                the Company requires capital, then the parties may borrow that capital
                from a bank. If the Company borrows money from a bank, then each
                equityholder shall be responsible for providing a guarantee for that
                proportion of the loan that represents their equityholding in the
                Company.

            

    

     

    
      
        
        

      

      
        16Exhibit
      10.46

     

    Equity
      and Asset Transfer Heads of Agreement

     

    This
      Equity and Asset Transfer Heads of Agreement sets out the proposed terms for
      a
      purchase by China Global Mining Resources Limited or its nominee (the
“Purchaser”)
      of
      equity in Nanjing Sudan Mining Co., Ltd [  ] and assets from Maanshan
      Zhaoyuan Mining Co., Ltd [  ] and assets from Xiaonanshan Mining Co.,
      Ltd [  ] (the “Transactions”).

     

    
      
        

      
1 Sellers

     

    (a) The
      Sellers are:

     

    
      	 	
              (i)

            	
              Lu
                Benzhao [  ] of Room 204, No. 17 Liyuan Village, Huashan
                District, Maanshan, Auhui;

            

    

     

    
      	 	
              (ii)

            	
              Lu
                Nan [  ] of Room 204, No. 17 Liyuan Village, Huashan District,
                Maanshan, Auhui;

            

    

     

    
      	 	
              (iii)

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

            

    

     

    
      	 	
              (iv)

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

            

    

     

    (collectively,
      the “Sellers”).

     

    
      	 	
              (b)

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

            

    

     

    
      
        

      
2 Purchaser

     

    The
      Purchaser is China Global Mining Resources Limited with its registered address
      at P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British
      Virgin Islands or its nominee.

     

    
      
        

      
3 Transactions

     

    The
      Purchaser shall purchase:

     

    
      	 	
              (a)

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

            

    

     

    
      	 	
              (b)

            	
              48%
                of the registered capital of Sudan from Mr Lu Nan;
                and

            

    

     

    
      	 	
              (c)

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

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              (d)

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

            

    

     

    
      	 	
              (e)

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

            

    

     

    The
      Sellers acknowledge the receipt and sufficiency from the Purchaser of a deposit
      in the amount of HKD 20 million (“First
      Deposit”).

     

    Within
      10
      working days of the execution of the Exclusive Supply Agreement (as defined
      in
      clause 6.1 (f) below), the Purchaser shall pay to the Sellers a further deposit
      of HKD 20 million (“Second
      Deposit”).

     

    The
      First
      Deposit and the Second Deposit and any other amounts (“Additional
      Amounts”)
      that
      are paid by the Purchaser to the Sellers prior to completion of the Transactions
      shall be set-off against the Purchase Price to be paid to the Seller and the
      Purchase Price shall be correspondingly reduced by the First Deposit, the Second
      Deposit and any Additional Amounts.

     

    The
      price
      to be paid by the Purchaser to the Sellers shall be USD 66 million or its RMB
      equivalent (“Purchase
      Price”),
      which
      shall be paid in cash or in shares in a listed company as shall be determined
      by
      the parties. The Purchase Price shall be reduced by the amount to be paid to
      Mr
      Lu Benzhao pursuant to the MSC (as defined below in clause 11).The portion
      of
      the Purchase Price to be paid to each Seller shall be specified in the
      Definitive Documents.

     

    
      
        

      
4 Exclusivity

     

    
      	 	
              (a)

            	
              In
                consideration of the Purchaser entering into this Equity and Asset
                Transfer Heads of Agreement, the Sellers and Sudan shall not, and
                shall
                procure that their affiliates shall not, from the date of signing
                this
                Equity and Asset Transfer Heads of Agreement and 3 May
                2012:

            

    

     

    
      	 	
              (i)

            	
              solicit
                offers from;

            

    

     

    
      	 	
              (ii)

            	
              negotiate
                or hold discussions with; or

            

    

     

    
      	 	
              (iii)

            	
              enter
                into any agreement or arrangement
                with,

            

    

     

    any
      person other than the Purchaser:

     

    
      	 	
              (i)

            	
              to
                sell or transfer or encumber any part of their equity interest in
                the
                registered capital of Sudan, Zhaoyuan and Xiaonanshan;
                or

            

    

     

    
      	 	
              (ii)

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

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              (iii)

            	
              to
                borrow, exchange for value, receive as a gift, or otherwise, any
                amount
                that is applied to, received or used in connection with the Mines
                or the
                Licences.

            

    

     

    
      	 	
              (b)

            	
              In
                consideration of the Purchaser entering into this Equity and Asset
                Transfer Heads of Agreement the Sellers shall not, and shall procure
                that
                their affiliates shall not, from the date of signing this Equity
                and Asset
                Transfer Heads of Agreement, develop, finance, or mine at the Mine
                Site or
                sell, gift, or exchange for value any product derived from the Mine
                Site,
                without the consent of the
                Purchaser.

            

    

     

    
      
        

      
5 Due Diligence and Legal
      Documentation

     

    
      	 	
              (a)

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

            

    

     

    
      	 	
              (b)

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

            

    

     

    
      	 	
              (i)

            	
              equity
                transfer agreement;

            

    

     

    
      	 	
              (ii)

            	
              asset
                transfer agreements;

            

    

     

    
      	 	
              (iii)

            	
              management
                services contract; and

            

    

     

    
      	 	
              (iv)

            	
              such
                other transaction documents as the Purchaser may, in its sole discretion
                require,

            

    

     

    (collectively,
      the “Definitive
      Documents”).

     

    
      
        

      
6 Undertakings

     

    6.1 Undertakings
      by the Sellers

     

    The
      Sellers undertake, and shall procure that their affiliates undertake, to the
      Purchaser that each shall:

     

    
      	 	
              (a)

            	
              use
                their best endeavours to negotiate and execute the Definitive
                Documents;

            

    

     

    
      	 	
              (b)

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

            

    

     

    
      	 	
              (c)

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

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              (d)

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

            

    

     

    
      	 	
              (e)

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

            

    

     

    
      	 	
              (f)

            	
              execute
                an agreement for the exclusive supply of iron ore from the Mines
                to the
                Purchaser (“Exclusive Supply Agreement”) on terms satisfactory to the
                Purchaser.

            

    

     

    6.2 Undertakings
      by the Purchaser

     

    The
      Purchaser undertakes to the Sellers that it shall:

     

    
      	 	
              (a)

            	
              use
                its best endeavours to negotiate and execute the Definitive Documents;
                and

            

    

     

    
      	 	
              (b)

            	
              execute
                the Exclusive Supply Agreement on terms satisfactory to the
                Purchaser.

            

    

     

    
      
        

      
7 Damages

     

    
      	 	
              (a)

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

            

    

     

    
      	 	
              (i)

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

            

    

     

    
      	 	
              (ii)

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

            

    

     

    
      	 	
              (iii)

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

            

    

     

    
      	 	
              (b)

            	
              In
                the event that the Sellers or
                Sudan:

            

    

     

    
      	 	
              (i)

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

            

    

     

    
      	 	
              (ii)

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

            

    

     

    
      	 	
              (iii)

            	
              breach
                the Exclusive Supply Agreement;

            

    

     

    
      	 	
              (iv)

            	
              do
                not own or cease to own the equity in Sudan, Xiaonanshan and
                Zhaoyuan;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              (v)

            	
              do
                not own or cease to own the Mine Site or the
                Licences;

            

    

     

    
      	 	
              (vi)

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

            

    

     

    
      	 	
              (vii)

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

            

    

     

    then
      the
      Sellers and Sudan shall jointly and severally be liable to:

     

    
      	 	
              (A)

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

            

    

     

    
      	 	
              (B)

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

            

    

     

    The
      Sellers acknowledge that the Liquidated Damages are a genuine pre-estimate
      of
      the Purchaser's loss. Any amount payable by the Sellers or Sudan pursuant to
      this clause 7(b)(B) constitutes liquidated damages only. It shall not affect
      the
      validity of other provisions in this Equity and Assets Transfer Heads of
      Agreement or any other remedies that the Purchaser may have against the Sellers
      and Sudan for enforcement of this Equity and Assets Transfer Heads of
      Agreement.

     

    
      
        

      
8 Conditions
      Precedent

     

    Conditions
      precedent to completion of the Transactions and payment of the Purchase Price
      shall be detailed in the Definitive Documents and shall include, without
      limitation, where applicable, the following:

     

    
      	 	
              (a)

            	
              Sudan,
                Zhaoyuan and Xiaonanshan have been duly incorporated with fully paid
                up
                registered capital;

            

    

     

    
      	 	
              (b)

            	
              The
                Sellers and Sudan have fully cooperated with the Purchaser, its
                representatives and professional advisers to assist the Purchaser
                to
                conduct its (i) technical mining due diligence, (ii) financial due
                diligence, (iii) legal due diligence and (iv) commercial due diligence
                in
                respect of the Transactions and, in each case, there is a successful
                completion of such due diligence and the results of which shall be
                satisfactory to the Purchaser;

            

    

     

    
      	 	
              (c)

            	
              The
                execution of the Definitive Documents in form and substance satisfactory
                to the Purchaser as the Purchaser may in its sole discretion
                require.

            

    

     

    
      	 	
              (d)

            	
              Approval
                by the board of directors of the
                Purchaser;

            

    

     

    
      	 	
              (e)

            	
              All
                necessary corporate approvals and consents having been obtained,
                including
                those of the board of directors of Zhaoyuan and
                Xiaonanshan

            

    

     

    
      	 	
              (f)

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

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              (g)

            	
              All
                Chinese government approvals, registrations, filings, consents and
                permits
                required for entry into the Definitive Documents, completion of the
                Transactions contemplated by the Definitive Documents, transfer of
                the
                Licences, mining at the Mine Sites, processing of iron ore at Sudan's
                facility and the entry into, enforceability and performance of the
                Definitive Documents shall have been obtained and shall be in full
                force
                and effect, including without limitation, any environmental or mining
                approvals or licences;

            

    

     

    
      	 	
              (h)

            	
              The
                Sellers, where applicable, hold valid, effective and fully paid licences
                to explore and mine iron ore at the Mine Sites, subject to such Licences
                being renewed and/or expanded, where applicable, for a period of
                no less
                than 3 years;

            

    

     

    
      	 	
              (i)

            	
              An
                approval letter having been issued indicating that the Purchaser
                has
                received approval to own 100% of the registered capital of
                Sudan;

            

    

     

    
      	 	
              (j)

            	
              A
                business licence having been issued indicating that the Purchaser
                is the
                registered owner of 100% of the registered capital of Sudan and that
                Sudan's business licence has a business scope satisfactory to the
                Purchaser, in its sole discretion;

            

    

     

    
      	 	
              (k)

            	
              Receipt
                of a technical mining report issued by an internationally recognised
                mining consultant indicating that the iron ore reserves at the Mine
                Site
                pursuant to the Licence held by Zhaoyuan are 9,600,000 metric tonnes
                and
                at the Mine Site pursuant to the Licence held by Xiaonanshan are
                1,000,000
                metric tonnes;

            

    

     

    
      	 	
              (l)

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

            

    

     

    
      	 	
              (m)

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

            

    

     

    
      	 	
              (n)

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

            

    

     

    
      	 	
              (o)

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

            

    

     

    
      	 	
              (p)

            	
              Evidence
                that all loans between the Sellers, Sudan and any other third party
                have
                been unwound;

            

    

     

    
      	 	
              (q)

            	
              Receipt
                of a copy of the Sellers PRC identity cards or business licences,
                as the
                case may be;

            

    

     

    
      	 	
              (r)

            	
              There
                being no material adverse change in the financial condition or business
                prospects of Sudan or the Mining Sites or the Licences or the estimated
                iron ore reserves of the Mining Sites since the conclusion of the
                technical, financial, legal and commercial due diligence;
                and

            

    

     

    
      	 	
              (s)

            	
              Other
                conditions precedent to be determined following the Purchaser's due
                diligence.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        

      
9 Warranties

     

    The
      Sellers and the Company will provide Warranties to the Purchaser in the
      Definitive Documents that shall include, where applicable, among
      others:

     

    
      	 	
              (a)

            	
              Sudan,
                Zhaoyuan and Xiaonanshan are corporations duly organized, validly
                existing
                and in good standing under the laws of the People's Republic of China
                (“PRC”),
                with fully paid up registered capital and full corporate power and
                authority to own, lease and dispose of their assets and
                properties;

            

    

     

    
      	 	
              (b)

            	
              The
                percentage ownership of the registered capital of Sudan held by the
                Sellers;

            

    

     

    
      	 	
              (c)

            	
              The
                Sellers having title to the Licences free from any security interest
                or
                third party claims;

            

    

     

    
      	 	
              (d)

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

            

    

     

    
      	 	
              (e)

            	
              Sudan
                conducting business within its authorised business
                scope;

            

    

     

    
      	 	
              (f)

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

            

    

     

    
      	 	
              (g)

            	
              Sudan,
                Zhaoyuan and Xiaonanshan having passed their annual inspection for
                2006
                and any other inspections conducted by any governmental or administrative
                authority, including without limitation any regarding mine safety
                and
                environmental compliance;

            

    

     

    
      	 	
              (h)

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

            

    

     

    
      	 	
              (i)

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

            

    

     

    
      	 	
              (j)

            	
              Sudan,
                Zhaoyuan and Xiaonanshan have no undisclosed or contingent liabilities
                and
                no outstanding loans;

            

    

     

    
      	 	
              (k)

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

            

    

     

    
      	 	
              (l)

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

            

    

     

    
      	 	
              (m)

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

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              (n)

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

            

    

     

    
      	 	
              (o)

            	
              All
                loans between the Sellers, Sudan and any other third party have been
                unwound;

            

    

     

    
      	 	
              (p)

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

            

    

     

    
      	 	
              (q)

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

            

    

     

    
      	 	
              (r)

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

            

    

     

    
      	 	
              (s)

            	
              Sellers
                are not aware of any matter which may result in the loss of the Licences
                or inability to renew the Licences;

            

    

     

    
      	 	
              (t)

            	
              Sellers
                have not given any guarantees to any Seller or any third party;
                and

            

    

     

    
      	 	
              (u)

            	
              Other
                warranties that would be standard for a transaction of this type,
                as well
                as any others that may arise as a result of continuing due diligence
                by
                the Purchaser, its representatives and professional
                advisers.

            

    

     

    
      
        

      
10 Indemnities

     

    The
      Sellers shall provide specific indemnities to the Purchaser in the Definitive
      Documents, where applicable, in respect of the following liabilities or
      obligations incurred by the Sellers and Sudan prior to completion of the
      Transaction:

     

    
      	 	
              (a)

            	
              taxation;

            

    

     

    
      	 	
              (b)

            	
              environmental
                and land degradation;

            

    

     

    
      	 	
              (c)

            	
              mine
                and worker safety;

            

    

     

    
      	 	
              (d)

            	
              all
                liabilities that are not disclosed to the Purchaser by the Sellers
                in
                writing;

            

    

     

    
      	 	
              (e)

            	
              payment
                of amounts owing in connection with the operation of the Mine Sites,
                the
                Licences, leases, licences or land use
                rights;

            

    

     

    
      	 	
              (f)

            	
              payment
                of employee salary and benefits;

            

    

     

    
      	 	
              (g)

            	
              breach
                of any laws or regulations, including without limitation, any with
                respect
                to environment, mine safety, worker safety and the built
                environment;

            

    

     

    
      	 	
              (h)

            	
              breach
                of any warranties provided in the Definitive Documents;
                and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              (i)

            	
              other
                appropriate matters that may become evident in the course of continuing
                due diligence by the Purchaser, its representatives and professional
                advisers.

            

    

     

    
      
        

      
11 Management
      Services Contract

     

    Upon
      completion of the Transactions, the Purchaser will enter into a management
      services contract (“MSC”)
      with Mr
      Lu Benzhao or his nominee (“Consultant”).
      The
      key terms of the MSC are as follows:

     

    
      	 	
              (a)

            	
              Consultant
                shall provide operational management services to the
                Purchaser;

            

    

     

    
      	 	
              (b)

            	
              the
                term of the MSC shall be eight (8) years on a full time basis from
                completion of the Transaction; and

            

    

     

    
      	 	
              (c)

            	
              Consultant
                shall be responsible for any approvals required for its entry into
                the MSC
                and all taxes, whether inside or outside the PRC, associated with
                payment
                of the Consultant's salary.

            

    

     

    
      
        

      
12 Non-competition

     

    12.1 Non-competition

     

    
      	 	
              (a)

            	
              Following
                execution of this Equity and Asset Transfer Heads of Agreement for
                a
                period of five (5) years following completion of the Transactions,
                the
                Sellers and their affiliates shall not directly or indirectly or
                in any
                manner whatsoever own or participate or be involved in any way in
                any
                business that explores, exploits, processes, purifies, transports,
                trades
                or deals in any other way in any mined product in the
                PRC.

            

    

     

    
      	 	
              (b)

            	
              Notwithstanding
                clause 12.1(a), the Sellers may hold a passive investment of less
                than 10%
                equity in listed companies that hold investments in any mined product
                and
                hold their investments in respect of these Transactions and hold
                their
                investment in Yun County Changjiang Mining Company Limited
                [  ]

            

    

     

    12.2 Right
      of First Refusal

     

    Following
      execution of this Equity and Asset Transfer Heads of Agreement, the Sellers
      and
      their affiliates undertake to the Purchaser that if the Sellers or any other
      companies in which the Sellers directly or indirectly control 25% or more of
      the
      issued capital take(s) on or invest(s) in any businesses and/or activities,
      either on their own or in the form of a joint venture, that is engaged in the
      mining or processing of any mined product, then the Sellers undertake to grant
      and will use their best efforts to procure such companies to grant to the
      Purchaser a right of first refusal to acquire such businesses from the Sellers
      or such companies, as the case may be.

     

    
      
        

      
13 Time
      Schedule

     

    It
      is the
      intention of the parties that, unless otherwise agreed among the Purchaser
      and
      the Sellers, due diligence shall take place from the date of signing this Equity
      and Assets Transfer Heads of Agreement , that execution of the Definitive
      Documents and submission of the Definitive Documents to the PRC government
      authorities for approval and registration purposes shall take place before
      30
      May 2007.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      
        

      
14 Language,
      Governing Law and Dispute Resolution

     

    14.1 Language

     

    This
      Equity and Assets Transfer Heads of Agreement and the Definitive Documents
      shall
      be prepared in English and Chinese, and both languages shall be of equal
      validity.

     

    14.2 Governing
      Law

     

    This
      Equity and Assets Transfer Heads of Agreement and the Definitive Documents
      shall
      be governed by PRC law.

     

    14.3 Dispute
      Resolution

     

    All
      disputes arising from this Equity and Assets Transfer Heads of Agreement and
      the
      Definitive Documents shall first be resolved by friendly consultation between
      the parties, failing which the disputes shall be submitted to arbitration at
      the
      China International Economic Trade and Arbitration Commission in Beijing for
      arbitration.

     

    
      
        

      
15 General

     

    15.1 General
      Warranties

     

    The
      Purchaser and Sudan, Zhaoyuan and Xiaonanshan warrant to each other party to
      this Equity and Assets Transfer Heads of Agreement that:

     

    
      	 	
              (a)

            	
              it
                has full legal right, power and authority to enter into this Equity
                and
                Assets Transfer Heads of Agreement and to perform and comply with
                its
                obligations thereunder; and

            

    

     

    
      	 	
              (b)

            	
              it
                has in full force and effect the authorisations necessary for it
                to enter
                into this Equity and Assets Transfer Heads of Agreement;
                and

            

    

     

    
      	 	
              (c)

            	
              its
                obligations under this Equity and Assets Transfer Heads of Agreement
                are
                legal, valid and binding and are enforceable against it in accordance
                with
                its terms; and

            

    

     

    
      	 	
              (d)

            	
              it
                is duly incorporated or established and validly existing at its place
                of
                registration and its equity and assets are not pledged or subject
                to a
                court freezing order or claims and disputes;
                and

            

    

     

    
      	 	
              (e)

            	
              no
                litigation, arbitration or administrative proceeding is currently
                taking
                place or pending or threatened against it or its
                assets.

            

    

     

    Mr
      Lu
      Benzhao and Mr Lu Nan warrant to each other party to this Equity Transfer Heads
      of Agreement that:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

            

    

     

    
      	 	
              (b)

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

            

    

     

    
      	 	
              (c)

            	
              no
                litigation, arbitration or administrative proceeding is currently
                taking
                place or pending or threatened against them or their
                assets.

            

    

     

    15.2 Successors
      and assignment

     

    The
      Purchaser is entitled to assign and/or nominate any of its affiliates to be
      a
      party to this Equity and Assets Transfer Heads of Agreement or any of the
      Definitive Documents.

     

    The
      Sellers may not assign or otherwise dispose of their rights or obligations
      under
      this Equity and Assets Transfer Heads of Agreement without the prior written
      consent of the Purchaser.

     

    15.3 No
      partnership or agency

     

    Nothing
      in this Equity and Assets Transfer Heads of Agreement shall create, or be deemed
      to create, a partnership between the parties or a relationship of agent and
      principal between the parties.

     

    15.4 Entire
      agreement

     

    This
      Equity and Assets Transfer Heads of Agreement contains the entire agreement
      between the parties with respect to its subject matter, supersedes all previous
      agreements and understandings between the parties.

     

    15.5 Variation
      and waiver

     

    Unless
      this Equity and Assets Transfer Heads of Agreement expressly states otherwise,
      a
      provision of this Equity and Assets Transfer Heads of Agreement, or right
      created under it, may not be waived or varied except in writing signed by the
      party or parties to be bound. Any waiver by the Purchaser of a breach of any
      provision of this Equity and Assets Transfer Heads of Agreement shall not be
      considered as a waiver of any subsequent breach of the same or any other
      provision.

     

    15.6 Copies

     

    This
      Equity and Assets Transfer Heads of Agreement shall be executed in six copies
      in
      English and six copies in Chinese.

     

    15.7 Foreign
      Exchange

     

    Where
      any
      amounts are to be converted between USD and RMB, the relevant exchange rate
      shall be the middle rate published by the People's Bank of China on the relevant
      date.

     

    15.8 Partial
      invalidity

     

    If
      at any
      time any provision of this Equity and Assets Transfer Heads of Agreement is
      or
      becomes illegal, invalid or unenforceable in any respect in any jurisdiction,
      the remaining provisions of this Equity and Assets Transfer Heads of Agreement
      shall not in any way be affected or impaired thereby.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    15.9 Amendment

     

    This
      Equity and Assets Transfer Heads of Agreement may only be amended in writing
      signed by the parties.

     

    15.10 Binding
      effect

     

    This
      Equity and Assets Transfer Heads of Agreement shall be binding on all the
      parties from the date first set out on the execution page.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Executed
      on 4 May 2007 by the following

     

    
      	
              EXECUTED by CHINA GLOBAL    

            	
                 )

            	 	 
	
              MINING RESOURCES LIMITED    

            	
                 )

            	 	 
	
              by its authorised director:    

            	
                 )

            	 	 
	 	
                 ) 

            	[AFFIX CHOP]
	 	
                 )

            	 	 
	 	
                 ) 

            	 	
              For and on behalf of

            
	
              Signature of Director

            	
                 ) 

            	 	
              CHINA GLOBAL MINING RESOURCES LIMITED

            
	 	
                 ) 

            	 	
              [  ]

            
	 	
                 )

            	 	 
	 	
                 ) 

            	 	
                 /s/

            
	
              Name of Director (block letters)    

            	
                 ) 

            	 	
              Authorised Signature(s)         

            
	 	
                 )

            	 	 
	 	
                 )

            	 	 
	 	
                 )

            	 	 
	
              SIGNED by LU BENZHAO [  ]:    

            	
                 )

            	 	 
	 	
                 )

            	 	 
	 	
                 )

            	 	 
	
                  /s/

            	
                 )

            	 	
                 /s/

            
	
              Witness Signature

            	
                 )

            	 	
              Signature

            
	 	
                 )

            	 	 
	 	
                 )

            	 	 
	
                  SK Bates

            	
                 ) 

            	 	 
	
              Print Name

            	
                 )

            	 	
              Print Name

            
	 	
                 )

            	 	 
	 	
                 )

            	 	 
	 	
                 )

            	 	 
	 	 	 	 
	
              SIGNED by LU NAN [  ]

            	
                 )

            	 	 
	 	
                 )

            	 	 
	 	
                 )

            	 	 
	 	
                 ) 

            	 	
                 /s/

            
	
              Witness Signature

            	
                 )

            	 	
              Signature

            
	 	
                 )

            	 	 
	 	
                 )

            	 	 
	 	
                 ) 

            	 	 
	
              Print Name

            	
                 )

            	 	
              Print Name

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              SIGNED by NANJING SUDAN

            	
                
                )

            	 
	
              MINING CO., LTD [  ]

            	
                
                )

            	 
	
              by its Legal Representative:

            	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	
              [AFFIX CHOP]

            
	
              /s/

            	
                
                )

            	 
	
              Signature of Legal Representative

            	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	 
	
              Name of Legal Representative (block

            	
                
                )

            	 
	
              Letters) Print

            	
                
                )

            	 
	 	 	 
	
              SIGNED by MAANSHAN

            	
                
                )

            	 
	
              ZHAOYUAN MINING CO., LTD 

            	
                
                )

            	 
	
              [  ] by its Legal Representative:

            	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	
              [AFFIX CHOP]

            
	
              /s/

            	
                
                )

            	 
	
              Signature of Legal Representative

            	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	 
	
              Name of Legal Representative (block

            	
                
                )

            	 
	
              Letters) Print

            	
                
                )

            	 
	 	 	 
	
              SIGNED by XIAONANSHAN 

            	
                
                )

            	 
	
              MINING CO., LTD [  ] 

            	
                
                )

            	 
	
              by its Legal Representative:

            	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	
              [AFFIX CHOP]

            
	
              /s/

            	
                
                )

            	 
	
              Signature of Legal Representative

            	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	 
	 	
                
                )

            	 
	
              Name of Legal Representative (block  

            	
                
                )

            	 
	
              Letters) Print

            	
                
                )

            	 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE 1

     

    Licences

     

    Mining Licences

    

    
      	
              Number

            	 	
              3400000420105

            	 	
              3400000620001

            
	 	 	 	 	 
	
              Licences
                owner

            	 	
              Maanshan,
                Zhaoyuan Mining Company Limited

            	 	
              Maanshan,
                Xiaonanshan Mining Company Limited

            
	 	 	 	 	 
	
              Address

            	 	
              Maanshan
                City, Jiashan Town, Matang Village

            	 	
              Maanshan
                City, Xiaonanshan

            
	 	 	 	 	 
	
              Name
                of mine

            	 	
              Maanshan
                City, Zhaoyuan Mining Company Limited, Matang iron ore
                mine

            	 	
              Maanshan
                City, Xiaonanshan Mining Company Limited, Xiaonanshan Iron ore
                mine

            
	 	 	 	 	 
	
              Type
                of mine

            	 	
              Iron
                ore mine

            	 	
              Iron
                ore mine

            
	 	 	 	 	 
	
              Type
                of operations

            	 	
              Open
                cut operations

            	 	
              Open
                cut operations

            
	 	 	 	 	 
	
              Size
                of operations

            	 	
              500,000
                tonnes per year

            	 	
              100,000
                tonnes per year

            
	 	 	 	 	 
	
              Area

            	 	
              0.7886
                square kilometres

            	 	
              0.1379
                square kilometres

            
	 	 	 	 	 
	
              Depth

            	 	
              45
                to -50 metres deep

            	 	
              85
                to 5 metres deep

            
	 	 	 	 	 
	
              Validity

            	 	
              May
                2004 to May 2021

            	 	
              January
                2006 to January 2009

            
	 	 	 	 	 
	
              Reference
                numbers

            	 	
              1,3503084.00,40363236.00

              2,3503074.00,40364027.00

              3,3503998.00,40364039.00

              4,3504008.00,40363249.00

              5,3503660.00,40363162.00

              6,3503333.00,40363034.00

            	 	
              1,3506130.00,40368260.00

              2,3506216.00,40368310.00

              3,3506347.00,40368417.00

              4,3506335.00,40368575.00

              5,3506234.00,40368553.00

              6,3506183.00,40368587.00

              7,3506093.00,40368610.00

              8,3506032.00,40368599.00

              9,3505883.00,40368537.00

              10,3505882.00,40368342.00

              11,3505894.00,40368272.00

              12,3506045.00,40368191.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]