SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2011

SUBSEQUENT EVENTS

NOTE 26 SUBSEQUENT EVENTS

In early 2012, in preparation for the increase in working capital needs as a result of the near term production capacity expansion, Lihua Copper and Lihua Electron entered into discussions with various banks about general banking facility arrangements. In January and February 2012, Lihua Copper and Lihua Electron signed agreements to pledge their land use rights and buildings, with carrying values of $14.3 million and $7.4 million, respectively, as of December 31, 2011, for a period of 3-5 years in favor of various banks in China up to an aggregate amount of RMB73.8 million ($11.7 million using February 29, 2012 exchange rate). As of March 12, 2012, Lihua Copper and Lihua Electron have not yet entered into any lending agreements with these banks.