Brief Introduction to Mining Department of YMEC

Exploration and Development of Mineral Resources in Foreign Countries

Based on the guidance for business development of “integrating power resources with mineral resources”, YMEC dedicates to reconnaissance, exploration and exploitation of non-ferrous metal resources in Yunnan province and neighboring countries, utilizes high-quality processing resources in China and rich mineral resources in foreign countries, probes into integrating two resources on the basis of mutual benefits, and serves Chinese and foreign markets. Through utilizing and developing various resources in Yunnan province and neighboring countries such as Lao PDR, Myanmar and Vietnam, YMEC will develop and grow into a regional multinational with international economic cooperation as linkage.

Development Project of Namtu-Bawtwin Mineral Resources in the Union of Myanmar

Namtu-Bawtwin mine is one of the biggest lead-zinc ore deposit in Asia with more than a millennium mining history. The exploitable tailings accumulated in the past 10 centuries have totaled up to more than 3 million tons enough for a concentrating mill with annual capacity of 200 thousand tons to process for consecutive 15 years.

YMEC had been awarded the mining right of Namtu-Bawtwin Deposit and production & operation right to reclaim lead and zinc from the tailings at Namtu by Myanmar Investment Commission (MIC) and Ministry of Mines of the Union of Myanmar. At present, YMEC has invested more than 5 million USD for a concentrating mill with daily capacity of 500 tons and this concentrating mill is expected to operate before the third quarter of year 2008. YMEC will also invest 50 million USD to develop an open pit with annual capacity of 8 million in the near future.

YMEC is in the process of negotiation with the Myanmar Government for reconnaissance, exploration and exploitation of the mineral resources in an area with more than 1200 square kilometers in Northern Myanmar.

YMEC is also conducting reconnaissance, exploration and exploitation for mineral resources in a region in Son La province in Vietnam, the expected reserves of lead and zinc in this region is around 70 thousand tons, and a concentrating mill will be built in the year 2008.