0001493893
2011-01-01
2011-12-31
0001493893
2011-12-31
0001493893
2010-12-31
0001493893
2010-01-01
2010-12-31
0001493893
us-gaap:CommonStockMember
2011-01-01
2011-12-31
0001493893
us-gaap:CommonStockMember
2010-12-31
0001493893
us-gaap:CommonStockMember
2011-12-31
0001493893
us-gaap:AdditionalPaidInCapitalMember
2011-01-01
2011-12-31
0001493893
us-gaap:AdditionalPaidInCapitalMember
2010-12-31
0001493893
us-gaap:AdditionalPaidInCapitalMember
2011-12-31
0001493893
us-gaap:NoncontrollingInterestMember
2011-01-01
2011-12-31
0001493893
us-gaap:NoncontrollingInterestMember
2010-12-31
0001493893
us-gaap:NoncontrollingInterestMember
2011-12-31
0001493893
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2011-01-01
2011-12-31
0001493893
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2010-12-31
0001493893
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2011-12-31
0001493893
us-gaap:RetainedEarningsMember
2011-01-01
2011-12-31
0001493893
us-gaap:RetainedEarningsMember
2010-12-31
0001493893
us-gaap:RetainedEarningsMember
2011-12-31
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
China ShouGuan Mining Corporation
0001493893
10-K
2011-12-31
false
--12-31
No
No
No
FY
2011
101000000
339870
2425494
-297262
-85892
2046503
3214059
3364768
344750
206655
125454
783610
258011
320600
5159337
245139
142945
14296682
4195307
1677379
1476708
340046
307458
193814
101517
1070435
3394909
10000
10100
1476708
1677379
307458
340046
101517
193814
1499226
-1150904
15367117
7590216
227427
372488
3334
1285
5667239
4234853
212365
161491
4023618
3872613
3312260
-1150904
1499226
2914396
2885159
15367117
7590216
10424069
883047
10100
10000
300000000
300000000
100000000
100000000
3244290
3927051
576883
2525440
3821173
6452491
-4875791
-1746445
-1054618
4706046
-1192318
-1271350
-2246936
3434696
2929
3684
44931
-2294225
3438380
-323317
-949645
-2617542
2488735
-2617542
92297
92228
-2525245
2580963
-0
0
100166667
100000000
-1192318
-1271350
95149
210518
46450
1174909
157743
-330477
-205552
-41177
506911
25293
-328700
284211
96466
-67731
-1005247
2405304
-3168902
-148055
-74872
-46333
-10835495
-1374547
9519661
1180159
9768246
736952
-13128
59497
-2085624
1827206
651736
665713
-1239465
-1180159
-6352256
200771
-678591
47814
235384
32588
-32588
92297
92297
200771
100
200671
0
Non-accelerated Filer
<p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">1.	ORGANIZATION AND BACKGROUND</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">China ShouGuan Mining Corporation (“CSMC” or “the Company”) was
incorporated in the State of Nevada on May 4, 2011.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company, through its subsidiaries and variable interest entities, is principally
engaged in the project management of gold mining operations in China. In May 2010, the Company commenced its first project, the
Cunli Ji Gold Mine which is located in Shandong Province, the People Republic of China (“PRC”). Following May 2011,
the Company commenced its second project, the Dayuan Gold Mine which is located in Shandong Province, the PRC.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">On October 30, 2011, the Company consummated the sale to 19 accredited investors of an
aggregate of 1,000,000 shares of its common stock, par value $0.001, at a per share price of $0.201, or $201,000 in the aggregate,
pursuant to certain subscription agreements. The shares were subsequently issued on January 12, 2012.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Business background</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company was founded by a number of professionals and experts who specialize in mining
technologies, mining resources management and financial and strategic management. The Company focuses on existing gold mine projects
in Shandong province of the PRC. These potential targets are mostly run with low productively because of inadequate funds and primitive
technologies. The Company positions to re-engineer and redevelop these gold mines through transfer of advanced exploration and
mining technologies, capital injection and effective management. The business model includes sourcing of early stage gold mines
with good profit potential, conducting feasibility studies to identify suitable projects, leasing the suitable mining sites and
facilities and managing the mining operations on these selected sites, with the goal of acquiring the mine if the operations proved
to be satisfactory under the Company’s criteria.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Revenue is generated from the sales of non-refined gold concentrates, which is the principal
raw material used in gold smelting operation to produce gold bar or product. The Company dig out chunks of mineral rocks from our
mining site and undergoes a series of physical processes, including crushing, screening, grinding and scanning to produce gold
concentrates. All the above processes are outsourced to independent third party contractors and the Company does not take possession
of the mineral rocks during the whole processes. The Company only takes possession of the gold concentrates when they are sold
to smelters and the selling prices are determined from two factors, the amount of gold in the gold concentrates and the price of
gold at the date of sales. The amount of gold in the gold concentrates is determined and agreed between the Company and the smelters
whereas the selling price is determined according to the official gold price at the time of sales as indicated by the Shanghai
Gold Exchange (http://www.sge.sh, an entity governed by the PRC Government).</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Reorganization</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">On June 23, 2011, the Company entered into a stock exchange transaction with the shareholders
of Bei Sheng Limited (“BSL”), whereby the Company issued 100,000,000 shares of common stock in exchange for 100% of
the ownership interest in BSL, for the purpose of re-domiciling BSL as a Nevada corporation in the United States. As a result of
the share exchange transaction, BSL became a wholly-owned subsidiary of the Company. Unless otherwise indicated, all references
to the Company throughout the financial statements include the operations of BSL and its subsidiaries and variable interest entities
(“VIEs”).</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">BSL was incorporated in the British Virgin Islands (the “BVI”) on December
17, 2010 as a limited liability company with registered share capital of $50,000, divided into 50,000 common shares of US$1 par
value each, for the purpose of holding 100% equity interest in <font style="color: black">Golden Wide International Limited</font>
(“<font style="color: black">GWIL</font>”).</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">GWIL was incorporated in the Hong Kong Special Administrative Region (“Hong Kong”)
on June 18, 2010 as a limited liability company with authorized share capital of $10,000, divided into 10,000 ordinary shares of
$0.13 (equivalent to Hong Kong Dollars (“HK$”) HK$1) par value each. GWIL formed Shoujin Business Consulting (Shenzhen)
Limited (“SBCL”) as a wholly foreign-owned enterprise under the laws of the People’s Republic of China (the “PRC”)
on April 23, 2011. SBCL has a registered capital of RMB100,000 and is principally engaged in the provision of business consulting
service in the PRC.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company, through SBCL entered into and consummated certain contractual arrangements
with Shenzhen Shouguan Investment Co., Ltd (“SSIC”), JinGuan and XinGuan on May 15, 2011. As a result of these contractual
arrangements, which obligates SBCL to absorb a majority of the risk of loss from the activities of SSIC, JinGuan and XinGuan and
enables SBCL to receive a majority of its expected residual returns, the Company accounts for SSIC, JinGuan and XinGuan and its
subsidiaries as a variable interest entity (“VIE”) under Accounting Standards Codification (“ASC”) Topic
810-10-5-8, “Variable Interest Entities”. (“VIE Arrangement”).</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Details of subsidiaries and VIEs</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The details of the Company’s subsidiaries and VIEs are described below:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 602px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 132px; border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">Name</td>
<td style="width: 6px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 136px; border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">Place of incorporation and kind of legal entity</td>
<td style="width: 5px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 146px; border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">Principal activities and place of operation</td>
<td style="width: 5px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 108px; border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">Particulars of issued/registered share capital</td>
<td style="width: 5px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 58px; border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">Effective interest held</td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt">Bei Sheng Limited (“BSL”)</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">British Virgin Islands, a limited liability company</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">Investment holding in GWIL and provision of mining technical advice</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">50,000 issued shares of US$1 each</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">100%</td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt">Golden Wide International Limited (“GWIL”)</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">Hong Kong, a limited liability company</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">100%-investment holding in SBCL and provision of mining technical advice</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">10,000 issued ordinary shares of HK$1 each</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">100%</td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt">Shoujin Business Consulting (Shenzhen) Limited (“SBCL”)</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">The PRC, a limited liability company</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">Provision of consulting service in the PRC</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">RMB100,000</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">100%</td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt">Shenzhen Shouguan Investment Co., Ltd (“SSIC”) #</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">The PRC, a limited liability company</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">99%-investment holding in JinGuan</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">RMB10,180,000</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">N/A</td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt">Yantai JinGuan Investment Limited (“JinGuan”) #</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">The PRC, a limited liability company</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">100%-investment holding in XinGuan, provision of mining consulting service</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">RMB5,000,000</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">N/A</td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 1.4pt; padding-left: 1.4pt">Penglai XinGuan Investment Limited (“XinGuan”) #</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">The PRC, a limited liability company</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">Exploration, drilling, mining and sale of gold products</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">RMB29,000,000</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">N/A</td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0"># 	represents variable interest entity (“VIE”)</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company and its subsidiaries and VIEs are hereinafter collectively referred to as
(“the Company”).</p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">2.	GOING CONCERN UNCERTAINTIES</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">These consolidated financial statements have been prepared assuming that the Company
will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course
of business for the foreseeable future.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">For the year ended December 31, 2011, the Company suffered from substantial losses with
the accumulated deficit of $1,150,904 as of that date and incurred a working capital deficit of $7,509,673. The continuation of
the Company is dependent upon the continuing financial support of shareholders and generating significant revenue and achieving
profitability from the operation of Dayuan Gold Mine. The actions involve certain development and restructuring strategies in Dayuan
Gold Mine. However, there is no assurance that the Company will be successful in securing sufficient funds or developing Dayuan
Gold Mine to sustain the operations.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">These and other factors raise substantial doubt about the Company’s ability to
continue as a going concern. These consolidated financial statements do not include any adjustments to reflect the possible future
effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result in
the Company not being able to continue as a going concern.</p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">3.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Basis of presentation</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">These accompanying consolidated financial statements have been prepared in accordance
with generally accepted accounting principles in the United States of America (“U.S. GAAP”).</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Use of estimates</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">In preparing these consolidated financial statements, management makes estimates and
assumptions that affect the reported amount of assets and liabilities in the balance sheets and revenues and expenses during the
years reported. Actual results may differ from these estimates.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Basis of consolidation</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The consolidated financial statements include the accounts of CSMC, its subsidiaries
and VIEs. All inter-company balances and transactions between the Company and its subsidiaries and VIEs have been eliminated upon
consolidation.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company has adopted the ASC Topic 810-10-5-8, “Variable Interest Entities”.
ASC Topic 810-10-5-8 requires a variable interest entity or VIE to be consolidated by a company if that company is subject to a
majority of the risk of loss for the VIEs or is entitled to receive a majority of the VIEs’ residual returns.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; text-indent: 0.55pt; margin: 0">-    Variable interest entity</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0"><font style="color: black">On May 15, 2011, the Company’s subsidiary, SBCL entered
into a series of agreements (“VIE agreements”) </font>amongst SSIC, JinGuan, XinGuan and the individual owners of SSIC,
JinGuan and XinGuan and details of the VIE agreements are as follows :</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 28.35pt">1.</td><td style="text-align: justify">Exclusive Technical Service and Business Consulting Agreement, SBCL has the exclusive right to
provide to SSIC, JinGuan and XinGuan consulting services, including operational management, human resources management, research
and development of the technologies related to the operations of SSIC, JinGuan and XinGuan. SSIC, JinGuan and XinGuan pays to SBCL
annually consulting service fees in an amount equals to all of their revenue for such year. These agreements run for 10 year terms
and are subject to automatic renewal for an additional 10 year term provided that no objection is made by both parties on the renewal.<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 28.35pt">2.</td><td style="text-align: justify">Exclusive Option Agreement, SBCL has the option to purchase SSIC, JinGuan and XinGuan all assets
and ownership at any time.<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 28.35pt">3.</td><td style="text-align: justify">Equity Pledge Agreement, SSIC, JinGuan and XinGuan agree to pledge their legal interest to SBCL
as a security for the obligations under the Exclusive Technical Service and Business Consulting Agreement.<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 28.35pt">4.</td><td style="text-align: justify">Proxy Agreement, SSIC, JinGuan and XinGuan irrevocably grant and entrust SBCL the right to exercise
its voting and other stockholder’s right.<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 28.35pt">5.</td><td style="text-align: justify">Operating Agreement, SBCL agrees to participate in the operations of SSIC, JinGuan and XinGuan
in different aspects.</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">With the above agreements, SBCL demonstrates its ability to control SSIC, JinGuan and
XinGuan as the primary beneficiaries and the operating results of the VIEs was included in the consolidated financial statements
for the years ended December 31, 2011 and 2010.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; text-indent: -29.4pt; margin: 0 0 0 29.4pt">-    Cash and cash equivalents</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits
placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or
less as of the purchase date of such investments.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Accounts receivable</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Accounts receivable are recorded at the invoiced amount and do not bear interest. Management
reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of
receivables. Management also periodically evaluates individual customer’s financial condition, credit history and the current
economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against
the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company
does not have any off-balance-sheet credit exposure related to its customers. For the years ended December 31, 2011 and 2010<font style="color: black">,
no allowance for doubtful accounts was provided.</font></p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Prepaid mining rights</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Prepaid mining rights represent certain amount of lease prepayment made for the operation
of the mining license of Dayuan Gold Mine and are being amortized using a straight-line basis over its scheduled lease term.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Property, plant and equipment</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from
the date on which they become fully operational and after taking into account their estimated residual values:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 99%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 57%; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="width: 21%; border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">Expected useful lives</td>
<td style="width: 1%; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center"> </td>
<td style="width: 19%; border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">Residual value</td></tr>
<tr>
<td style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Plant and machinery</td>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">10 years</td>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center"> </td>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">5%</td></tr>
<tr>
<td style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Motor vehicles</td>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">5 years</td>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center"> </td>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">5%</td></tr>
<tr>
<td style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Office equipment</td>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">3-5 years</td>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center"> </td>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">5%</td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">Expenditure for repairs and maintenance is expensed as incurred. When
assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain
or loss is recognized in the results of operations.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; text-indent: -29.4pt; margin: 0 0 0 29.4pt">-    Construction in progress</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Construction in progress is stated at cost, which includes the costs of self-constructed
assets, including mine development assets during the construction phase. Indirect overhead costs are not included in the cost of
self-constructed assets. Construction in progress is not depreciated until such time as the assets are completed and put into operational
use. No capitalized interest is incurred during the period of construction. Total estimated construction cost of mining development
facility is approximately $206,700 and the construction project is expected to be fully completed in the second quarter of 2012.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; text-indent: -24.1pt; margin: 0 0 0 24.1pt">-   Impairment of long-lived assets</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">In accordance with the provisions of ASC Topic 360-10-5, “Impairment or Disposal
of Long-Lived Assets”, all long-lived assets such as mining assets, prepaid mining rights, property, plant and equipment
and construction in progress held and used by the Company are annually reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated
by a comparison of the carrying amount of assets to estimated discounted net cash flows expected to be generated by the assets.
Future cash flows are based on estimated quantities of gold and other recoverable metals, expected price of gold and other commodity
(considering current and historical prices, price trends and related factors), production levels and cash costs of production,
capital and reclamation costs, all based on detailed engineering life-of-mine plans. If such assets are considered to be impaired,
the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of
the assets.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">Numerous factors including, but not limited to, such things as unexpected
grade changes, gold recovery problems, shortages of equipment and consumables, equipment failures, and collapse of pit walls, could
impact our ability to achieve forecasted production schedules from proven and probable reserves. Additionally, commodity prices,
capital expenditure requirements and reclamation costs could differ from the assumptions used in the cash flow models used to assess
impairment. The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves
further risks in addition to those factors applicable to mineral interests where proven and probable reserves have been identified,
due to the lower level of confidence that the identified mineralized material can ultimately be mined economically. There has been
no impairment charge for the years presented.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">During the year ended December 31, 2011, the Company suffered from
an operating loss in Dayuan Gold Mine commencing from May 2011. The operation was temporarily halted in the fourth quarter of 2011
due to (i) mine restructuring and exploration; (ii) technology improvement and (iii) government energy-saving program which resulted
in electricity supply cut-down in December 2011. The Company expects the operation to be resumed in 2012 after the mine restructuring
work is completed. Hence, the Company assessed the prepaid mining rights and plant and equipment associated with the related business
unit for impairment test as of December 31, 2011. Based on the discounted cash flow model utilizing estimated future earnings and
cash flows, the fair value of the reporting unit exceed the carrying amounts of those assets. There has been no impairment charge
for the years presented.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Revenue recognition</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">In accordance with the ASC Topic 605, “Revenue Recognition”, the Company
recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered,
the selling price is fixed or determinable and collectibility is reasonably assured.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">(a)	Product sales</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company derives revenues from the sales of non-refined gold concentrate to smelters,
whereas the smelter usually takes 6 days for the production from non-refined gold concentrate to gold bullion. The Company generally
recognizes its revenues, net of value-added taxes ("VAT") at the time of gold bullion is produced by the smelter and
its selling price is determined by the market value of gold bullion quoted by the Shanghai Gold Exchange.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0"><font style="color: black">The Company is subject to VAT which is levied on the standard
gold products at the standard rate of 17% on the invoiced value of sales. </font>The Company’s VIE, XinGuan is granted with
a preferential tax treatment under the Chinese tax law of the “Notice from Ministry of Finance and State Tax Bureau in Relation
to Exemption of Value Added Tax on Gold Production” and “Notice regarding issues on Tax Policy on Gold Transaction”,
whereas gold produced and sold by gold mining and smelting enterprises are exempted from VAT.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">(b)	Service revenue</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Service revenue is primarily derived from the provision of mining consulting and technical
services that are not an element of an arrangement for the sale of products. These services are generally billed on a monthly fixed
amount or time-cost plus basis, for a period of service time from 6 months to 2 years. Revenue is recognized, net of business taxes
when service is rendered and accepted by the customers.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">(c)	Interest income</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Interest income is recognized on a time apportionment basis, taking into account the
principal amounts outstanding and the interest rates applicable.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Cost of revenue</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0"><font style="color: black">C</font>ost of revenues consists primarily of amortization
of mining rights, direct material, direct labor, sub-contracting mining fee, smelting and extracting fee, depreciation of mining
plants and other operating overhead, which are directly attributable to the sales of gold <font style="color: black">concentrate</font>.
Shipping and handling costs, associated with the distribution of finished products, are borne by the customers.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; text-indent: -29.4pt; margin: 0 0 0 29.4pt">-    Advertising expense</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0"></p>
<p style="text-align: justify; margin: 0">Advertising costs are expensed as incurred under ASC Topic 720-35, “Advertising
Costs”. The Company incurred no advertising expense for the years ended December 31, 2011 and 2010, respectively.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; text-indent: -29.4pt; margin: 0 0 0 29.4pt">-    Resource compensation fees</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">In accordance with the relevant regulations under the Chinese Law, a company that is
engaged in exploiting mineral resources is required to pay a resource tax and resources compensation levy to the local government
as the compensation for the depletion of mineral resources. Pursuant to “Provisional Regulations on Resources Tax of the
PRC” and “Administrative Rules on the Levy of Mineral Resources Compensation”, the amounts of the resource tax
and resources compensation levy are computed on the basis of the sales revenue of mineral products. The Company paid resource compensation
fees of $128,734 and $64,856 for the years ended December 31, 2011 and 2010, respectively and recorded as general and administrative
expense when incurred.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; text-indent: -29.4pt; margin: 0 0 0 29.4pt">-    Environmental costs</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The PRC has adopted extensive environmental laws and regulations that affect the operations
of the mining industry. The outcome of environmental liabilities under proposed or future environmental legislation cannot be reasonably
estimated at present, and could be material. Under existing legislation, however, the Company management believes that there are
no probable liabilities that will have a material adverse effect on the financial position of the Company.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Comprehensive income</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">ASC Topic 220, “Comprehensive Income”, establishes standards for reporting
and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes
in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying consolidated
statement of stockholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This
comprehensive income is not included in the computation of income tax expense or benefit.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Income taxes</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company adopts the ASC Topic 740, “Income Taxes” regarding accounting
for uncertainty in income taxes which prescribes the recognition threshold and measurement attributes for financial statement recognition
and measurement of tax positions taken or expected to be taken on a tax return. In addition, the guidance requires the determination
of whether the benefits of tax positions will be more likely than not sustained upon audit based upon the technical merits of the
tax position. For tax positions that are determined to be more likely than not sustained upon audit, a company recognizes the largest
amount of benefit that is greater than 50% likely of being realized upon ultimate settlement in the financial statements. For tax
positions that are not determined to be more likely than not sustained upon audit, a company does not recognize any portion of
the benefit in the financial statements. The guidance provides for de-recognition, classification, penalties and interest, accounting
in interim periods and disclosure.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">For the years ended December 31, 2011 and 2010, the Company did not have any interest
and penalties associated with tax positions. As of December 31, 2011 and 2010, the Company did not have any significant unrecognized
uncertain tax positions.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company conducts major businesses in the PRC and is subject to tax in this jurisdiction.
As a result of its business activities, the Company files tax returns that are subject to examination by the foreign tax authority.
For the year ended December 31, 2011, the Company filed and cleared 2010 tax return with its local tax authority.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Net income (loss) per share</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company calculates net income (loss) per share in accordance with ASC Topic 260,
“Earnings per Share.” Basic income (loss) per share is computed by dividing the net income (loss) by the weighted-average
number of common shares outstanding during the period. Diluted income per share is computed similar to basic income (loss) per
share except that the denominator is increased to include the number of additional common shares that would have been outstanding
if the potential common stock equivalents had been issued and if the additional common shares were dilutive.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Foreign currencies translation</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Transactions denominated in currencies other than the functional currency are translated
into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities
denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange
rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The reporting currency of the Company is United States Dollars ("US$"). The
Company's subsidiary in the PRC maintain its books and records in its local currency, Renminbi Yuan ("RMB"), which is
functional currency as being the primary currency of the economic environment in which the entity operates.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0"><font style="color: black">In general, for consolidation purposes, assets and liabilities
of its subsidiaries and VIEs whose functional currency is not US$ are translated into US$, in accordance with </font>ASC Topic
830-30<font style="color: black">, “Translation of Financial Statement”, using the exchange rate on the balance sheet
date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation
of financial statements of foreign subsidiaries and VIEs are recorded as a separate component of accumulated other comprehensive
income within the statement of stockholders’ equity.</font></p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Translation of amounts from RMB into US$1 has been made at the following exchange rates
for the respective year:</p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 58%; padding-right: 0.85pt; padding-left: 5.65pt; text-align: center; text-indent: -5.65pt"> </td>
<td style="width: 1%; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="width: 18%; border-bottom: windowtext 1pt solid; padding-right: -1.4pt; padding-left: 1.4pt; text-align: center; text-indent: -0.7pt">2011</td>
<td style="width: 1%; padding-right: 5.6pt; padding-left: 6.5pt; text-align: right"> </td>
<td style="width: 19%; border-bottom: windowtext 1pt solid; padding-right: -1.5pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none; text-align: center; text-indent: -0.1pt">2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Year-end RMB:US$1 exchange rate</td>
<td style="padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="padding-right: 4.9pt; padding-left: 0.85pt; text-align: right">6.3523</td>
<td style="padding-right: 8.4pt; padding-left: 6.5pt; text-align: right"> </td>
<td style="padding-right: 4.9pt; padding-left: 0.85pt; text-align: right">6.6118</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Annual average RMB:US$1 exchange rate</td>
<td style="padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 4.9pt; padding-left: 0.85pt; text-align: right">6.4544</td>
<td style="padding-right: 8.4pt; padding-left: 6.5pt; text-align: right"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 4.9pt; padding-left: 0.85pt; text-align: right">6.8372</td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Retirement plan costs</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Contributions to retirement plans (which are defined contribution plans) are charged
to general and administrative expenses in the accompanying consolidated statements of operation as the related employee service
is provided.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Related parties</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Parties, which can be a corporation or individual, are considered to be related if the
Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party
in making financial and operational decisions. Companies are also considered to be related if they are subject to common control
or common significant influence.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Segment reporting</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">ASC Topic 280, “Segment Reporting” establishes standards for reporting information
about operating segments on a basis consistent with the Company’s internal organization structure as well as information
about geographical areas, business segments and major customers in financial statements. For the years ended December 31, 2011
and 2010, the Company operates in two reportable operating segments in the PRC.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Fair value of financial instruments</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0"><font style="color: black">The carrying value of the Company’s financial instruments
include cash and cash equivalents, accounts receivable, amounts due from (to) related parties, deposits and prepayments, accounts
payable, income tax payable, accrued liabilities and other payable. Fair values were assumed to approximate carrying values for
these financial instruments because they are short term in nature and their carrying amounts approximate fair values. </font>The
carrying value of the Company’s loans payable approximated its fair value based on the current market prices or interest
rates for similar debt instruments.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements
and Disclosures” ("ASC 820-10"), with respect to financial assets and liabilities that are measured at fair value.
ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px">-</td>
<td style="width: 578px">Level 1 : Observable inputs such as quoted prices in active markets; </td></tr>
</table>
<p style="margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px">-</td>
<td>Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and </td></tr>
</table>
<p style="margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px">-</td>
<td>Level 3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions </td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Fair value estimates are made at a specific point in time based on relevant market information
about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment
and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 27pt">-</td><td style="text-align: justify">Recent accounting pronouncements</td></tr></table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company has reviewed all recently issued, but not yet effective, accounting pronouncements
and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial
condition or the results of its operations.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">In December 2010, the Financial Accounting Standards Board (“FASB”) issued
ASU No. 2010-28 regarding the goodwill impairment test for reporting units with zero or negative carrying amounts. The guidance
clarifies the steps to be performed to determine whether goodwill has been impaired and addresses the steps for reporting units
with zero or negative carrying amounts. This guidance is effective for fiscal years (and interim periods within such years) beginning
after December 15, 2010. The adoption of this guidance had no impact on the Company’s consolidated financial statements.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">In May 2011, the FASB issued ASU No. 2011-04 regarding fair value measurements and disclosures.
This new guidance clarifies the application of existing fair value measurement guidance and revises certain measurement and disclosure
requirements to achieve convergence with International Financial Reporting Standards. This guidance is effective for the first
interim or annual period beginning after December 15, 2011. In the period of adoption, the Company will include the required disclosures
in its filings and believes the adoption will have no impact on its consolidated financial statements.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">In June 2011, the FASB issued ASU No. 2011-05 regarding the presentation of comprehensive
income. This new guidance amends the previous application of comprehensive income and the requirements regarding presentation in
the financial statements. It requires the disclosure of the components of comprehensive income, which the Company currently discloses
in other sections of its filings, to be presented as part of one statement of comprehensive income, or as a separate statement
of comprehensive income following the statement of earnings. In December 2011, the FASB issued ASU No. 2011-12 which temporarily
defers those changes in ASU No. 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other
comprehensive income. This guidance is effective for fiscal years (and interim periods within such years) beginning after December
15, 2011. The Company is currently evaluating the impact the adoption will have on its consolidated financial statements.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">In December 2011, the FASB issued ASU No. 2011-11 regarding disclosures about offsetting
assets and liabilities. This new guidance requires an entity to disclose information about offsetting and related arrangements
to enable users of its financial statements to understand the effect of those arrangements on its financial position. This guidance
is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods.
The Company is currently evaluating the impact the adoption will have on its consolidated financial statements.</p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">9.	AMOUNT DUE TO A RELATED PARTY</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">As of December 31, 2011 and 2010, amount due to a related party represented
temporary advances made by Mr. Zhang, the director of the Company, which was unsecured, interest-free with no fixed repayment term.
Imputed interest is considered insignificant.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">5.	DEPOSITS AND PREPAYMENTS</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">Deposits and prepayments consist of the following:</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 599px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: center"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: center">As of December 31,</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: center">2011</td>
<td style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none; text-align: center">2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 349px; padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="width: 7px; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="width: 15px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 103px; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="width: 8px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 15px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 103px; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Advances to employees</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">69,835</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">11,490</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Prepaid operating expenses</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">157,313</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">6,846</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Prepaid government levy</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">34,869</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">30,248</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Prepaid financing costs</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">24,956</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Deposits</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">12,761</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">12,005</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Other receivables</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">22,484</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">347</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="text-indent: -5.65pt; margin: 0 0.85pt 0 5.65pt"> </p>
<p style="text-indent: -5.65pt; margin: 0 0.85pt 0 5.65pt"> </p></td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">297,262</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">85,892</td></tr>
</table>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">6.	DAYUAN GOLD MINING PROJECT</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">On May 6, 2011, the Company, through its variable interest entity, Yantai Jinguan Investment
Co., Ltd. (“Yantai”), entered into a lease agreement with Longkou Dayuan Gold Mining Co. Ltd., an unrelated third party
being the legal owner and holding the mining license of the Dayuan gold mine (the “Lease Property”) regarding Dayuan
Gold Mine. Under the agreement, the Company agrees to pay the aggregate rental payments of approximately $20 million for a term
of 10 years commencing from April 1, 2011 through April 1, 2021 to obtain the right to manage and operate the Lease Property in
the repayment schedule, whereas the Company is committed to pay $12 million equal to 6 years’ rental, no later than September
30, 2011 and the remainder will be paid no later than March 1, 2017. On September 25, 2011, both parties signed a Supplemental
Agreement agreed to defer the aforesaid balance of payment of $6 million to March 31, 2012. On March 30, 2012, the payment was
agreed to extend further to September 30, 2012.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Concurrently, the Company entered into an equipment transfer agreement (the “Transfer
Agreement”) with Longkou Datong Industry and Trade Co., Ltd. for the acquisition of mining assets and auxiliary equipment
currently being used in the Dayuan gold mine at a purchase price of approximately $2.3 million.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">As of December 31, 2011, the Company made the prepayment for mining rights of $6.5 million.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 599px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: center">As of December 31,</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none; text-align: center">2011</td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; vertical-align: top; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: center"> </td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.55pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none; text-align: center">2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 349px; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="width: 7px; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 15px; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="width: 103px; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 8px; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 15px; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 103px; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Prepaid mining rights – Dayuan Gold Mine</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">6,454,355</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Less: accumulated amortization</td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(1,174,909)</td>
<td nowrap="nowrap" style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Less: foreign translation adjustment</td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(18,884)</td>
<td nowrap="nowrap" style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="margin: 0"> </p>
<p style="margin: 0">Prepaid mining rights, net</p></td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">5,260,562</td>
<td nowrap="nowrap" style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td></tr>
</table>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The rent expense on prepaid mining rights for the years ended December 31, 2011 and 2010
was $1,174,909 and $0, respectively. As of December 31, 2011, the estimated annual amortization of the prepaid mining rights for
the next three years is as follows:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 99%; border-collapse: collapse">
<tr>
<td nowrap="nowrap" style="width: 55%; vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Years ending December 31:</td>
<td nowrap="nowrap" style="width: 2%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="width: 2%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="width: 18%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="width: 2%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt"> </td>
<td nowrap="nowrap" style="width: 2%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="width: 17%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 6.3pt; text-align: justify">2012</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center">$</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">2,077,988</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 6.3pt; text-align: justify">2013</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">2,077,988</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 6.3pt; text-align: justify">2014</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">1,104,586</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Total:</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center">$</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">5,260,562</td></tr>
</table>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">7.	MINING ASSETS</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0"></p>
<p style="text-align: justify; margin: 0">The Company’s first project, the Cunli Ji Gold Mine, began in May 2009 and is operated
and managed by the subsidiary, XinGuan. On May 4, 2009, the Company, through its VIE, XinGuan entered into an operating lease agreement
with Penglai City Gold Mining Holding Co. Ltd (“PCGM”). Pursuant to the operating lease agreement, XinGuan agreed to
lease and manage the gold mine for a term of 20 months, with a rental deposit of approximately $2.9 million (equivalent to RMB
20 million). Also, XinGuan agreed to acquire the gold mine for a purchase consideration of approximately $5 million (equivalent
to RMB 34.8 million) under the acquisition agreement, if the following conditions are satisfied upon the expiry of the operating
lease agreement: 1) the satisfaction of certain level of the monthly production capacity and 2) the production management of the
mine reaches ISO (or equivalent) standard.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">On January 3, 2011, the Company and PCGM mutually agreed to extend the lease term of
the Cunliji gold mine for an additional six months expiry on July 3, 2011 with all terms and conditions to remain unchanged and
granted the waiver of 12-months’ rental charge for 2010 fiscal year under the operating lease agreement. Since one of the
criteria, namely daily production of 80 tonnes as set out in the aforesaid operating lease agreement cannot be met, on July 3,
2011 both parties agreed to extend the lease term of the Cunliji gold mine for another six months to January 3, 2012.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">For the year ended December 31, 2011, the Company made further payments
of approximately $1.3 million.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">Subsequently, on January 3, 2012, the above transaction was closed
and the rental deposit became part of the purchase consideration.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Summarized the operating results of the Cunli Ji Gold Mine for the years ended December
31, 2011 and 2010, which have been included in the consolidated financial statements, as below:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 599px; margin-left: 1.4pt; border-collapse: collapse">
<tr>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 5.65pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none; text-indent: -5.65pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none; text-align: center"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none; text-align: center">Years ended December 31,</td></tr>
<tr>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 5.65pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none; text-indent: -5.65pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td colspan="2" style="vertical-align: top; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: center">2011</td>
<td style="vertical-align: top; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none; text-align: center; text-indent: 1.95pt">2010</td></tr>
<tr>
<td style="width: 349px; vertical-align: top; padding-right: 0.85pt; padding-left: 5.65pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none; text-indent: -5.65pt"> </td>
<td style="width: 7px; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="width: 15px; vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="width: 104px; vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="width: 7px; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="width: 15px; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="width: 103px; vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none">Revenues, net</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none">$</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">2,250,163</td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none">$</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">3,927,051</td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 9.1pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none; text-indent: -9.1pt">Cost of revenue</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">(1,215,539)</td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">(1,547,462)</td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none">Gross profit</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">1,034,624</td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">2,379,589</td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none">Operating expenses:</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 9.1pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none">General and administrative</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">(430,011)</td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">(442,677)</td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="margin: 0 0.9pt 0 0"> </p>
<p style="margin: 0 0.9pt 0 0">Total operating expenses</p></td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">(430,011)</td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">(442,677)</td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none">Income from operations</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">604,613</td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">1,936,912</td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none">Other income :</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 9.1pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none">Interest income</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">386</td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">-</td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 9.1pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none">Other income</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">453</td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">587</td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none">Income before income taxes</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">605,452</td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt dashed; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">1,937,499</td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none">Income tax expense</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">(221,856)</td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">(517,081)</td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; tab-stops: 22.0pt 45.0pt 67.0pt; text-autospace: none">NET INCOME</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; text-align: left; text-autospace: none">$</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">383,596</td>
<td style="vertical-align: bottom; padding-right: 7.6pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none">$</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">1,420,418</td></tr>
</table>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">8.	PROPERTY, PLANT AND EQUIPMENT</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">Property, plant and equipment consist of the following:</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 599px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: center">As of December 31,</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none; text-align: center">2011</td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; vertical-align: top; padding-right: 0.55pt; padding-left: 0.55pt; tab-stops: decimal .75in; text-autospace: none; text-align: center"> </td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.55pt; padding-left: 1.4pt; tab-stops: decimal .75in; text-autospace: none; text-align: center">2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 349px; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="width: 7px; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 15px; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="width: 103px; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 8px; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 15px; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 103px; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Plant and machinery</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">3,208,005</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">134,629</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Motor vehicles</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">223,360</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">181,455</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Office equipment</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">129,077</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">75,456</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt">Foreign translation adjustment</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">79,416</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">11,997</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">3,639,858</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">403,537</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Less: accumulated depreciation</td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(267,765)</td>
<td nowrap="nowrap" style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(57,246)</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Less: foreign translation adjustment</td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(7,325)</td>
<td nowrap="nowrap" style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(1,541)</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="margin: 0"> </p>
<p style="margin: 0">Plant and equipment, net</p></td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">3,364,768</td>
<td nowrap="nowrap" style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">344,750</td></tr>
</table>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Depreciation expense for the years ended December 31, 2011 and 2010 were $210,518 and
$46,450, respectively.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"> </p>
<p style="text-align: justify; margin: 0"><b>11.	LOANS PAYABLE, UNSECURED</b></p>
<p style="text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">For the year ended December 31, 2011, the Company entered into a short-term
loan of $5,159,337 (equivalent to RMB32,773,658) with an independent third party, due November 27, 2012 on an extension basis,
which carried annual interest at Bank of China Benchmark Lending Rate, payable at maturity.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">As of December 31, 2011, the Company also held the following long-term
loans payable to third parties:</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 508px; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,255,255)">
<td> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; text-align: center"><b>As of December 31,</b></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><b> </b></td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: center"><b>2011</b></td>
<td style="text-align: center"><b> </b></td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: center"><b>2010</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,255,255)">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="width: 11pt"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Loans payable to 4 individuals in the PRC, unsecured:</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,255,255)">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Equivalent to RMB4,500,000 (2010: RMB9,250,000) with interest rate at 2.7% per annum, payable at its maturity, due May 7, 2013</td>
<td>$</td>
<td style="text-align: right">708,405</td>
<td> </td>
<td>$</td>
<td style="text-align: right">703,288</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,255,255)">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Equivalent to RMB9,400,000 (2010: RMB 9,250,000) with interest rate at 2.7% per annum, payable at its maturity, due May 7, 2013</td>
<td> </td>
<td style="text-align: right">1,479,779</td>
<td> </td>
<td> </td>
<td style="text-align: right">1,399,014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,255,255)">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Equivalent to RMB8,000,000 with interest rate at 5.18% per annum, payable at its maturity, due June 14, 2013</td>
<td> </td>
<td style="text-align: right">1,259,386</td>
<td> </td>
<td> </td>
<td style="text-align: right">1,209,958</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,255,255)">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Equivalent to RMB2,700,000 with non-interest bearing, payable at its maturity, due March 29, 2013</td>
<td> </td>
<td style="text-align: right">425,043</td>
<td> </td>
<td> </td>
<td>-</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,255,255)">
<td> </td>
<td style="border-top: windowtext 1pt solid"> </td>
<td style="border-top: windowtext 1pt solid"> </td>
<td rowspan="2"> </td>
<td style="border-top: windowtext 1pt solid"> </td>
<td style="border-top: windowtext 1pt solid"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Total loans payable, non-current:</td>
<td style="border-bottom: windowtext 2pt double">$</td>
<td style="border-bottom: windowtext 2pt double; text-align: right">3,872,613</td>
<td style="border-bottom: windowtext 2pt double">$</td>
<td style="border-bottom: windowtext 2pt double; text-align: right">3,312,260</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,255,255)">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="text-align: justify; margin: 0"></p>
<p style="text-align: justify; margin: 0"> </p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">12.	ACCRUED LIABILITIES AND OTHER PAYABLE</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Accrued liabilities and other payable consist of the following:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 599px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: center"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: center">As of December 31,</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: center">2011</td>
<td style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none; text-align: center">2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 349px; padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="width: 7px; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="width: 15px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 103px; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="width: 8px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 15px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 103px; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Salaries and welfare payable</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">50,516</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">63,748</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Accrued operating expenses</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">55,113</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">20,043</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Other payables</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">139,510</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">59,154</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="text-indent: -5.65pt; margin: 0 0.85pt 0 5.65pt"> </p>
<p style="text-indent: -5.65pt; margin: 0 0.85pt 0 5.65pt"> </p></td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">245,139</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">142,945</td></tr>
</table>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">13.	STOCKHOLDERS’ EQUITY</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">On June 23, 2010, the Company entered into a stock exchange transaction and issued a
total of 100,000,000 shares of common stock, for the purpose of re-domiciling BSL as a Nevada corporation in the United States.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Pursuant to stock exchange transaction on June 23, 2010, the weighted average number
of common shares issued and outstanding of 100,000,000 shares was adjusted to account for the effects of the stock exchange transaction
as re-domiciling BSL as a Nevada corporation as fully described in Note 1, for all periods presented as if the recapitalization
had occurred at the beginning of the earliest period presented.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">On October 30, 2011, the Company consummated the sale to 19 accredited investors of an
aggregate of 1,000,000 shares of its common stock, par value $0.0001, at a per share price of $0.201, or $201,000 in the aggregate,
pursuant to certain subscription agreements. These shares were subsequently issued on January 12, 2012.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">As of December 31, 2011, the Company had a total of 101,000,000 shares of its common
stock issued and outstanding.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">14.	INCOME TAXES</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">For the years ended December 31, 2011 and 2010, the local (United States) and foreign
components of (loss) income from operations before income taxes were comprised of the following:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 600px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; padding-right: -1.85pt; padding-left: 1.4pt; text-align: center">Years ended December 31,</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 6.5pt; text-align: center">2011</td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: center"> </td>
<td nowrap="nowrap" colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center">2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 349px; padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Tax jurisdictions from:</td>
<td nowrap="nowrap" style="width: 7px; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="width: 15px; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="width: 103px; border-top: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td style="width: 8px; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 15px; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="width: 104px; border-top: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 1.4pt">- Local</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt">$</td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt">$</td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 1.4pt">- Foreign</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(2,294,225)</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">3,438,380</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="margin: 0 0.85pt 0 0"> </p>
<p style="margin: 0 0.85pt 0 0">(Loss) Income before income taxes</p></td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="margin: 0 0.85pt"> </p>
<p style="margin: 0 0.85pt">$</p></td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="margin: 0 0.85pt 0 0"> </p>
<p style="margin: 0 0.85pt 0 0">(2,294,225)</p></td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="margin: 0 0.85pt"> </p>
<p style="margin: 0 0.85pt">$</p></td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="margin: 0 0.85pt 0 0"> </p>
<p style="margin: 0 0.85pt 0 0">3,438,380</p></td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The provision for income taxes consisted of the following:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 598px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; padding-right: -1.85pt; padding-left: 1.4pt; text-align: center">Years ended December 31,</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 6.5pt; text-align: center">2011</td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: center"> </td>
<td nowrap="nowrap" colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center">2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 349px; padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Current:</td>
<td nowrap="nowrap" style="width: 5px; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="width: 15px; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="width: 103px; border-top: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td style="width: 9px; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 15px; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="width: 103px; border-top: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 1.4pt">- Local</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt">$</td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt">$</td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 1.4pt">- Foreign</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">323,317</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">949,645</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 1.4pt">Deferred:</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 1.4pt">- Local</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 1.4pt">- Foreign</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="margin: 0 0.85pt 0 0"> </p>
<p style="margin: 0 0.85pt 0 0">Income tax expense</p></td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 0.85pt">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">323,317</td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 0.85pt">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">949,645</td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The effective tax rate in the years presented is the result of the mix of income earned
in various tax jurisdictions that apply a broad range of income tax rates. The Company has subsidiaries that operate in various
countries: United States, BVI, Hong Kong and the PRC that are subject to taxes in the jurisdictions in which they operate, as follows:</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">United States of America</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company is registered in the State of Nevada and is subject to the tax laws of the
United States of America.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">British Virgin Island</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Under the current BVI law, BSL is not subject to tax on its income or profits. For the
years ended December 31, 2011 and 2010, BSL generated an operating loss of $56,788 and $36,320.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Hong Kong</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">GWIL is subject to Hong Kong Profits Tax, which is charged at the statutory income rate
of 16.5% on its assessable income. For the years ended December 31, 2011 and 2010, GWIL suffered from an operating loss of $10,583
and $26,417.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The PRC</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company generated its income from its subsidiaries and VIEs operating in the PRC
for the years ended December 31, 2011 and 2010. All entities in the PRC are subject to the Corporate Income Tax Law of the People’s
Republic of China at a unified income tax rate of 25%. A reconciliation of income tax rate to the effective income tax rate for
the years ended December 31, 2011 and 2010 is as follows:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 604px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; padding-right: -1.85pt; padding-left: 1.4pt; text-align: center">Years ended December 31,</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td colspan="2" style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: center">2011</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: center"> </td>
<td colspan="2" style="border-top: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center">2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 350px; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="width: 7px; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 15px; border-top: windowtext 1pt solid; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="width: 104px; border-top: windowtext 1pt solid; padding-right: 3.3pt; padding-left: 1.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 8px; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 15px; border-top: windowtext 1pt solid; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 105px; border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">(Loss) income before income taxes</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(2,226,854)</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 1.4pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt">$</td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">3,428,477</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Statutory income tax rate</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">25%</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">25%</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt">Income tax expense at the statutory rate</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(556,714)</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">857,119</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt">Net operating loss not recognized as deferred tax asset</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">456,188</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">96,096</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt">Net operating loss carryforward</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(37,648)</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt">Non-deductible item</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">420,586</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">31,456</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 1.4pt; padding-left: 1.4pt">Tax adjustments</td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">3,257</td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: bottom; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="vertical-align: top; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">2,622</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="margin: 0"> </p>
<p style="margin: 0">Income tax expense</p></td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-top: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">323,317</td>
<td nowrap="nowrap" style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-top: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td style="border-top: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">949,645</td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The following table sets forth the significant components of the aggregate net deferred
tax assets of the Company as of December 31, 2011 and 2010:</p>
<p style="text-align: justify; margin: 0"><font style="background-color: yellow"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 99%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">As of December 31,</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">2011</td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 58%; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Deferred tax assets:</td>
<td style="width: 0%; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 2%; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="width: 18%; padding-right: 0.55pt; padding-left: 0.55pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 1%; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 2%; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="width: 16%; padding-right: 0.55pt; padding-left: 0.55pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Net operating loss carryforwards from the PRC</td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">256,411</td>
<td nowrap="nowrap" style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">$</td>
<td style="padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">165,208</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Less: valuation allowance</td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(256,411)</td>
<td nowrap="nowrap" style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">(165,208)</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="margin: 0"> </p>
<p style="margin: 0">Deferred tax assets</p></td>
<td style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.55pt; padding-left: 0.55pt">$</td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td>
<td nowrap="nowrap" style="padding-right: 0.55pt; padding-left: 0.55pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.85pt; padding-left: 1.4pt; text-align: right">-</td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<p style="margin: 0">As of December 31, 2011, the Company incurred $1,009,418 of aggregate net operating loss carryforward available
to offset its taxable income for income tax purposes. The Company has provided for a full valuation allowance against the deferred
tax assets of $256,411 on the expected future tax benefits from the net operating loss carryforwards as the management believes
it is more likely than not that these assets will not be realized in the future. For the year ended December 31, 2011, the valuation
allowance was increased by $91,203, primarily relating to net operating loss carryforward in the foreign tax regime.</p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">15.	NET (LOSS) INCOME PER SHARE</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Basic net (loss) income per share is computed using the weighted average number of common
shares outstanding during the year. The dilutive effect of potential common shares outstanding is included in diluted net (loss)
income per share. The following table sets forth the computation of basic and diluted net (loss) income per share for the years
ended December 31, 2011 and 2010:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 601px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">Years ended December 31,</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 1.4pt; text-align: center">2011</td>
<td style="border-top: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center">2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" colspan="2" style="padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 347px; padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Net (loss) income attributable to common stockholders</td>
<td nowrap="nowrap" style="width: 6px; padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="width: 12px; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="width: 107px; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right">(2,617,542)</td>
<td style="width: 9px; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 12px; padding-right: 6.35pt; padding-left: 0.85pt; text-align: right">$</td>
<td style="width: 107px; padding-right: 0.85pt; padding-left: 6.5pt; text-align: right">2,488,735</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Weighted average common shares outstanding</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 3.5pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">100,166,667</td>
<td style="padding-right: 0.85pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 3.5pt; padding-left: 0.85pt; tab-stops: decimal .75in; text-autospace: none; text-align: right">100,000,000</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt"> </td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 4.9pt; padding-left: 6.5pt; text-align: right"> </td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 4.9pt; padding-left: 6.5pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Basic net (loss) income per share</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="padding-right: 4.9pt; padding-left: 6.5pt; text-align: right">(0.03)</td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="padding-right: 7.7pt; padding-left: 6.5pt; text-align: right">0.02</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 5.65pt; text-indent: -5.65pt">Diluted net (loss) income per share</td>
<td nowrap="nowrap" style="padding-right: 0.85pt; padding-left: 0.85pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 4.9pt; padding-left: 6.5pt; text-align: right">(0.03)</td>
<td style="padding-right: 0.85pt; padding-left: 6.5pt; text-align: right"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 7.7pt; padding-left: 6.5pt; text-align: right">0.02</td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">16.	CHINA CONTRIBUTION PLAN</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Under the PRC Law, full-time employees of its subsidiaries in the PRC are entitled to
staff welfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a China government-mandated
multi-employer defined contribution plan. The Company is required to accrue for these benefits based on certain percentages of
the employees’ salaries. The total contributions made for such employee benefits were $23,138 and $30,013 for the years ended
December 31, 2011 and 2010, respectively.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">17.	STATUTORY RESERVE</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Under the PRC Law, the Company’s subsidiary and variable interest entities in the
PRC are required to make appropriation to the statutory reserve based on after-tax net earnings and determined in accordance with
generally accepted accounting principles of the People’s Republic of China (the “PRC GAAP”). Appropriation to
the statutory reserve should be at least 10% of the after-tax net income until the reserve is equal to 50% of the registered capital.
The statutory reserve is established for the purpose of providing employee facilities and other collective benefits to the employees
and is non-distributable other than in liquidation.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">For the years ended December 31, 2011 and 2010, the Company contributed $32,588 and $298,904
to statutory reserve, respectively.</p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">18.	SEGMENT INFORMATION</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company’s business units have been aggregated into two reportable segments,
as defined by ASC Topic 280:</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Mining management business – project management of gold mining operations;</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Mining technical service business – provision of mining consulting and technical
services.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company operates these business segments in the PRC and all of the identifiable assets
of the Company are located in the PRC during the years presented.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The accounting policies of the segments are the same as those described in the summary
of significant accounting policies. The Company has no inter-segment sales for the years ended December 31, 2011 and 2010. The
Company’s reportable segments are strategic business units that offer different products and services. They are managed separately
because each business requires different technology and marketing strategies. Summarized financial information concerning the Company’s
reportable segments is shown in the following table for the years ended December 31, 2011 and 2010:</p>
<p style="text-align: justify; margin: 0"><font style="background-color: yellow"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 602px; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td colspan="8" style="border-bottom: windowtext 1pt solid; text-align: center">Year ended December 31, 2011</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 3.7pt; text-align: right">Mining management business</td>
<td style="text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 4.65pt; text-align: right">Mining technical service business</td>
<td style="text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 5.65pt; text-align: right">Total</td></tr>
<tr style="vertical-align: top">
<td style="width: 246px; text-align: justify">Operating revenues, net:</td>
<td style="width: 13px; text-align: right"> </td>
<td style="width: 100px; text-align: right"> </td>
<td style="width: 8px; text-align: right"> </td>
<td style="width: 11px; text-align: right"> </td>
<td style="width: 102px; text-align: right"> </td>
<td style="width: 8px; text-align: right"> </td>
<td style="width: 14px; text-align: right"> </td>
<td style="width: 99px; text-align: right"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify">- Products</td>
<td>$</td>
<td style="padding-right: 3.7pt; text-align: right">3,244,290</td>
<td style="text-align: right"> </td>
<td>$</td>
<td style="padding-right: 4.65pt; text-align: right">-</td>
<td style="text-align: right"> </td>
<td>$</td>
<td style="padding-right: 0.7pt; text-align: right">3,244,290</td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify">- Service</td>
<td> </td>
<td style="padding-right: 3.7pt; text-align: right">-</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="padding-right: 4.65pt; text-align: right">576,883</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="padding-right: 0.7pt; text-align: right">576,883</td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify">Total operating revenues</td>
<td style="border-top: windowtext 1pt solid"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 3.7pt; text-align: right">3,244,290</td>
<td style="text-align: right"> </td>
<td style="border-top: windowtext 1pt solid"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 4.65pt; text-align: right">576,883</td>
<td style="text-align: right"> </td>
<td style="border-top: windowtext 1pt solid"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 0.7pt; text-align: right">3,821,173</td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify">Cost of revenues</td>
<td style="border-bottom: windowtext 1pt solid"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 3.7pt; text-align: right">(4,731,501)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 4.65pt; text-align: right">(144,290)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 0.7pt; text-align: right">(4,875,791)</td></tr>
<tr>
<td style="vertical-align: top; text-align: justify"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 3.7pt; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; padding-right: 4.65pt; text-align: right"> </td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; text-align: right"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify">Gross (loss) profit</td>
<td style="border-bottom: windowtext 1pt dashed"> </td>
<td style="border-bottom: windowtext 1pt dashed; padding-right: 3.7pt; text-align: right">(1,487,211)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1pt dashed"> </td>
<td style="border-bottom: windowtext 1pt dashed; padding-right: 4.65pt; text-align: right">432,593</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1pt dashed"> </td>
<td style="border-bottom: windowtext 1pt dashed; padding-right: 0.7pt; text-align: right">(1,054,618)</td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify">Depreciation and amortization</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 3.7pt; text-align: right">1,359,539</td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; padding-right: 4.65pt; text-align: right">25,888</td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; text-align: right">1,385,427</td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify">Total assets</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 3.7pt; text-align: right">15,367,116</td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; padding-right: 4.65pt; text-align: right">-</td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; text-align: right">15,367,116</td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify">Expenditure for long-lived assets</td>
<td style="border-bottom: windowtext 1.5pt double">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 3.7pt; text-align: right">10,835,495</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1.5pt double">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 4.65pt; text-align: right">-</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1.5pt double">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 0.7pt; text-align: right">10,835,495</td></tr>
</table>
<p style="text-align: justify; margin: 0"><font style="background-color: yellow"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 602px; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td colspan="8" style="border-bottom: windowtext 1pt solid; text-align: center">Year ended December 31, 2010</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 3.7pt; text-align: right">Mining management business</td>
<td style="text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 4.65pt; text-align: right">Mining technical service business</td>
<td style="text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 5.65pt; text-align: right">Total</td></tr>
<tr style="vertical-align: top">
<td style="width: 246px; text-align: justify">Operating revenues, net:</td>
<td style="width: 13px; text-align: right"> </td>
<td style="width: 100px; text-align: right"> </td>
<td style="width: 8px; text-align: right"> </td>
<td style="width: 11px; text-align: right"> </td>
<td style="width: 102px; text-align: right"> </td>
<td style="width: 8px; text-align: right"> </td>
<td style="width: 14px; text-align: right"> </td>
<td style="width: 99px; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; text-align: justify">- Products</td>
<td style="vertical-align: top; text-align: center">$</td>
<td style="text-align: right">3,927,051</td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top">$</td>
<td style="vertical-align: top; padding-right: 4.65pt; text-align: right">-</td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top">$</td>
<td style="vertical-align: top; padding-right: 1.45pt; text-align: right">3,927,051</td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify">- Service</td>
<td> </td>
<td style="padding-right: 3.7pt; text-align: right">-</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="padding-right: 4.65pt; text-align: right">2,525,440</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="padding-right: 1.45pt; text-align: right">2,525,440</td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify">Total operating revenues</td>
<td style="border-top: windowtext 1pt solid"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 3.7pt; text-align: right">3,927,051</td>
<td style="text-align: right"> </td>
<td style="border-top: windowtext 1pt solid"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 4.65pt; text-align: right">2,525,440</td>
<td style="text-align: right"> </td>
<td style="border-top: windowtext 1pt solid"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 1.45pt; text-align: right">6,452,491</td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify">Cost of revenues</td>
<td style="border-bottom: windowtext 1pt solid"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 3.7pt; text-align: right">(1,547,462)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 4.65pt; text-align: right">(198,983)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-right: 1.45pt; text-align: right">(1,746,445)</td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td> </td>
<td style="padding-right: 3.7pt; text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="padding-right: 4.65pt; text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="padding-right: 1.45pt; text-align: right"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify">Gross profit</td>
<td style="border-bottom: windowtext 1pt dashed"> </td>
<td style="border-bottom: windowtext 1pt dashed; padding-right: 3.7pt; text-align: right">2,379,589</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1pt dashed"> </td>
<td style="border-bottom: windowtext 1pt dashed; padding-right: 4.65pt; text-align: right">2,326,457</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1pt dashed"> </td>
<td style="border-bottom: windowtext 1pt dashed; padding-right: 1.45pt; text-align: right">4,706,046</td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify">Depreciation</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 3.7pt; text-align: right">41,264</td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; padding-right: 4.65pt; text-align: right">5,186</td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 1.45pt; text-align: right">46,450</td></tr>
<tr>
<td style="vertical-align: bottom; text-align: justify">Total assets</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 3.7pt; text-align: right">7,371,445</td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 3.7pt; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 4.65pt; text-align: right">218,771</td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 1.45pt; text-align: right">7,590,216</td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify">Expenditure for long-lived assets</td>
<td style="border-bottom: windowtext 1.5pt double">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 3.7pt; text-align: right">1,297,089</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1.5pt double">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 4.65pt; text-align: right">77,458</td>
<td style="text-align: right"> </td>
<td style="border-bottom: windowtext 1.5pt double">$</td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.45pt; text-align: right">1,374,547</td></tr>
</table>
<p style="text-align: justify; margin: 0"><font style="background-color: yellow"> </font></p>
<p style="text-align: justify; margin: 0">All of the long-lived assets are located in the PRC.</p>
<p style="text-align: justify; margin: 0"><font style="background-color: yellow"> </font></p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">19.	CONCENTRATIONS OF RISK</p>
<p style="margin: 0"> </p>
<p style="margin: 0">The Company is exposed to the following concentrations of risk:</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">(a)	Major customers</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">For the years ended December 31, 2011 and for 2010, the customers who account for 10%
or more of the Company’s revenues and its outstanding balance at year-end date, are presented as follows:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 604px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 12.6pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td colspan="4" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">Year ended December 31, 2011</td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">December 31, 2011</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 13pt; margin: 0 0 0 12.6pt"> </p>
<p style="line-height: 13pt; text-align: left; margin: 0">Customer</p></td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">Revenue</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: center"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 12pt; text-align: center; margin: 0">Percentage</p>
<p style="line-height: 12pt; text-align: center; text-indent: 1.9pt; margin: 0">of revenue</p></td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 13pt; text-align: center; text-indent: -0.7pt; margin: 0"><font style="text-underline-style: none">Accounts</font></p>
<p style="line-height: 13pt; text-align: center; text-indent: -0.7pt; margin: 0"><font style="text-underline-style: none">receivable,
trade</font></p></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 171px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 49px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 6px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 19px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 103px; border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="width: 12px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 110px; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="width: 5px; padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="width: 5px; padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="width: 22px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 103px; border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Customer A</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="padding-right: 9.7pt; padding-left: 1.4pt; text-align: right">2,436,693</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 6.25pt; padding-left: 1.4pt; text-align: right">64%</td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">-</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Customer B</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 9.7pt; padding-left: 0.3in; text-align: right">576,883</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 6.25pt; padding-left: 0.3in; text-align: right">15%</td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">-</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Customer C</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 9.7pt; padding-left: 0.3in; text-align: right">444,102</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 6.25pt; padding-left: 0.3in; text-align: right">12%</td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">-</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 12.6pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 9.7pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 6.25pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 12.6pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">Total:</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 9.7pt; padding-left: 1.4pt; text-align: right">3,457,678</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 6.25pt; padding-left: 1.4pt; text-align: right">91%</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">-</td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 604px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 12.6pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td colspan="4" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">Year ended December 31, 2010</td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">December 31, 2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 13pt; margin: 0 0 0 12.6pt"> </p>
<p style="line-height: 13pt; text-align: left; margin: 0">Customer</p></td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">Revenue</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: center"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 12pt; text-align: center; margin: 0">Percentage</p>
<p style="line-height: 12pt; text-align: center; text-indent: 1.9pt; margin: 0">of revenue</p></td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 13pt; text-align: center; text-indent: -0.7pt; margin: 0"><font style="text-underline-style: none">Accounts</font></p>
<p style="line-height: 13pt; text-align: center; text-indent: -0.7pt; margin: 0"><font style="text-underline-style: none">receivable,
trade</font></p></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 171px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 49px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 6px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 19px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 103px; border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="width: 12px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 110px; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="width: 5px; padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="width: 5px; padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="width: 22px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 103px; border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Customer A</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="padding-right: 9.7pt; padding-left: 1.4pt; text-align: right">3,927,051</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 6.25pt; padding-left: 1.4pt; text-align: right">61%</td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">372,488</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Customer B</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 9.7pt; padding-left: 0.3in; text-align: right">2,360,602</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 6.25pt; padding-left: 0.3in; text-align: right">37%</td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">-</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 12.6pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 9.7pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 6.25pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 12.6pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">Total:</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 9.7pt; padding-left: 1.4pt; text-align: right">6,287,653</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 6.25pt; padding-left: 1.4pt; text-align: right">98%</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">372,488</td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">For the years ended December 31, 2011<font style="color: black"> and 2010</font>, 100%
of the Company’s sales were derived from customers located in the PRC.</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">(b)	Major vendors</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">For the years ended December 31, 2011<font style="color: black"> and
for 2010</font>, the vendors who account for 10% or more of the Company’s purchases and its outstanding balance at year-end
date, are presented as follows:</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 604px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 12.6pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td colspan="4" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">Year ended <font style="color: black">December 31, 2011</font></td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">December 31, 2011</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 13pt; margin: 0 0 0 12.6pt"> </p>
<p style="line-height: 13pt; text-align: left; margin: 0">Vendor</p></td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">Purchases</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: center"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 12pt; text-align: center; margin: 0">Percentage</p>
<p style="line-height: 12pt; text-align: center; text-indent: 1.9pt; margin: 0">of purchases</p></td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 13pt; text-align: center; text-indent: -0.7pt; margin: 0"><font style="text-underline-style: none">Accounts</font></p>
<p style="line-height: 13pt; text-align: center; text-indent: -0.7pt; margin: 0"><font style="text-underline-style: none">payable,
trade</font></p></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 171px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 49px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 6px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 19px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 103px; border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="width: 12px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 110px; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="width: 5px; padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="width: 5px; padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="width: 22px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 103px; border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Vendor A</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="padding-right: 9.7pt; padding-left: 1.4pt; text-align: right">350,287</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 4.8pt; padding-left: 1.4pt; text-align: right">32%</td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">61,452</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Vendor B</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 9.7pt; padding-left: 0.3in; text-align: right">349,485</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 4.8pt; padding-left: 0.3in; text-align: right">32%</td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">17,695</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 4.8pt; padding-left: 12.6pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 9.7pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 4.8pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 12.6pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">Total:</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 9.7pt; padding-left: 1.4pt; text-align: right">699,772</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 4.8pt; padding-left: 1.4pt; text-align: right">64%</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">79,147</td></tr>
</table>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 604px; margin-left: 1.4pt; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 12.6pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td colspan="4" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: center">Year ended <font style="color: black">December 31, 2010</font></td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">December 31, 2010</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 13pt; margin: 0 0 0 12.6pt"> </p>
<p style="line-height: 13pt; text-align: left; margin: 0">Vendor</p></td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">Purchases</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: center"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 12pt; text-align: center; margin: 0">Percentage</p>
<p style="line-height: 12pt; text-align: center; text-indent: 1.9pt; margin: 0">of purchases</p></td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="line-height: 13pt; text-align: center; text-indent: -0.7pt; margin: 0"><font style="text-underline-style: none">Accounts</font></p>
<p style="line-height: 13pt; text-align: center; text-indent: -0.7pt; margin: 0"><font style="text-underline-style: none">payable,
trade</font></p></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="width: 171px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 49px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 6px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="width: 19px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 103px; border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="width: 12px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 110px; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="width: 5px; padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="width: 5px; padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="width: 22px; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="width: 103px; border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Vendor A</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="padding-right: 9.7pt; padding-left: 1.4pt; text-align: right">478,221</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 4.8pt; padding-left: 1.4pt; text-align: right">37%</td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">22,876</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt">Vendor B</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 9.7pt; padding-left: 0.3in; text-align: right">342,879</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 4.8pt; padding-left: 0.3in; text-align: right">27%</td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">34,112</td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 4.8pt; padding-left: 12.6pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 9.7pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 4.8pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 27pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-top: windowtext 1pt solid; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 1.4pt; padding-left: 12.6pt"> </td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">Total:</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 9.7pt; padding-left: 1.4pt; text-align: right">821,100</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 4.8pt; padding-left: 1.4pt; text-align: right">64%</td>
<td style="padding-right: 1.4pt; padding-left: 1.4pt; text-align: right"> </td>
<td style="padding-right: 1.4pt; padding-left: 2.5pt; text-align: right"> </td>
<td style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt">$</td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; padding-right: 1.4pt; padding-left: 1.4pt; text-align: right">56,988</td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">For the years ended December 31, 2011<font style="color: black"> and 2010</font>, 100%
of the Company’s purchases were derived from vendors located in the PRC.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">(c)	Credit risk</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">Financial instruments that are potentially subject to credit risk consist principally
of accounts receivables. The Company believes the concentration of credit risk in its accounts and retention receivables is substantially
mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require
collateral from customers. Credit is extended based on evaluation of a customer's financial condition. The Company evaluates the
need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends
and other information.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">(d)	Exchange rate risk</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">The reporting currency of the Company is US$, to date the majority
of the revenues and costs are denominated in RMB and a significant portion of the assets and liabilities are denominated in RMB.
As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations
in the exchange rate between US$ and RMB. If RMB depreciates against US$, the value of RMB revenues and assets as expressed in
US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose to substantial
market risk.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">(e)	Economic and political risks</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">The Company's operations are conducted in the PRC. Accordingly, the
Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment
in the PRC, and by the general state of the PRC economy.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">The Company's operations in the PRC are subject to special considerations
and significant risks not typically associated with companies in North America and Western Europe. These include risks associated
with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely
affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to
laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">(f)	Mining industry risks</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">The Company's mining operations are subject to extensive national
and local governmental regulations in China, which regulations may be revised or expanded at any time. Generally, compliance with
these regulations requires the Company to obtain permits issued by government regulatory agencies. Certain permits require periodic
renewal or review of their conditions. The Company cannot predict whether it will be able to obtain or renew such permits or whether
material changes in permit conditions will be imposed. The inability to obtain or renew permits or the imposition of additional
conditions could have a material adverse effect on the Company's ability to develop and operate its mines.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">(g)	Risk on changing price in gold</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; text-indent: -0.05pt; margin: 0 0 0 0.05pt">At present, the price of gold in
the PRC is generally in line with the price of gold in the international market. There are many factors influencing the price of
gold in the international market, including the international economic situation (in particular the economic situation in the US),
petroleum prices, fluctuations in the exchange rates of the US dollar, fluctuations in the stock and other financial investment
markets and various political, military, social and economic contingencies. These factors are beyond the control of the Company.
Changes in the prices of the gold in the PRC and in the exchange rate of RMB as a result of these may adversely affect the operating
results of the Company. Under the relevant PRC laws and regulations, hedging activities presently are not permitted in gold tracing
in the PRC market. The Company has not been involved in hedging transactions or any alternative measures to manager the potential
price risk.</p>
<p style="line-height: 12pt; text-align: justify; text-indent: -0.05pt; margin: 0 0 0 0.05pt"> </p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">20.	COMMITMENTS AND CONTINGENCIES</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">The Company is committed under several non-cancelable operating leases for office premises
and mining rights with the terms ranging from 1 to 10 years, with fixed monthly rentals or scheduled payments. Total rent expenses
(excluding amortization of prepaid mining rights) for the years ended December 31, 2011 and 2010 was $84,471<font style="color: black">
and $65,314, respectively.</font></p>
<p style="margin: 0"> </p>
<p style="text-align: justify; margin: 0"><font style="color: black">As of December 31, 2011, the Company has </font>the aggregate
future minimum rental payments due under various non-cancelable operating leases in the next three years:</p>
<p style="text-align: justify; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 99%; margin-left: 3.5pt; border-collapse: collapse">
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 1.4pt; text-align: center"> </td>
<td colspan="8" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 1.4pt; text-align: center">Operating lease commitments</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt">
<p style="text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0"> </p></td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center">Office premises</td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center"> </td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center">Mine operating rights</td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: center"> </td>
<td nowrap="nowrap" colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: center">Total</td></tr>
<tr>
<td nowrap="nowrap" style="width: 38%; vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Years ending December 31,</td>
<td style="width: 4%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="width: 2%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="width: 16%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td>
<td style="width: 1%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="width: 2%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="width: 16%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td>
<td style="width: 1%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: justify"> </td>
<td nowrap="nowrap" style="width: 2%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="width: 15%; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 7pt; text-align: justify">2012</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify">$</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">18,035</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify">$</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">6,139,509</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: justify"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify">$</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">6,157,544</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 7pt; text-align: justify">2013</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">-</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">-</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: justify"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">-</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 7pt; text-align: justify">2014</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">-</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">8,186,011</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: justify"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">8,186,011</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="border-top: black 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="border-top: black 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="border-top: black 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="border-top: black 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: justify"> </td>
<td nowrap="nowrap" style="border-top: black 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="border-top: black 1pt solid; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify">Total:</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify">$</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">18,035</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify">$</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">14,325,520</td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: justify"> </td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify">$</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right">14,343,555</td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: top; padding-right: 1.4pt; padding-left: 1.4pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 6.5pt; text-align: justify"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: justify"> </td>
<td style="vertical-align: bottom; padding-right: 0.85pt; padding-left: 0.85pt; text-align: right"> </td></tr>
</table>
<p style="text-align: justify; margin: 0"> </p>
<p style="margin: 0pt"></p> <p style="margin: 0pt"></p>
<p style="text-align: justify; margin: 0">21.	SUBSEQUENT EVENTS</p>
<p style="text-align: justify; margin: 0"> </p>
<p style="line-height: 12pt; text-align: justify; margin: 0">On January 2, 2012, the Company and PCGM agreed to complete the acquisition
of Cunliji Gold Mine and waived its annual rental charge for 2011 fiscal year.</p>
<p style="line-height: 12pt; text-align: justify; margin: 0"> </p>
<p style="text-align: justify; margin: 0">In accordance with ASC Topic 855, “Subsequent Events”, which establishes
general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements
are issued, the Company has evaluated all events or transactions that occurred after December 31, 2011 up through the date the
Company issued the audited consolidated financial statements. During the period, the Company did not have any material recognizable
subsequent events.</p>
<p style="margin: 0pt"></p>