I. Brief Introduction to the Project

1. Project Outline: Construction scale and product plan: The yearly production capacity of the project will reach 800,000 tons. 750,000 tons of cold and hot rolling stainless steel plate will be produced each year, of which hot rolling steel plate will be 450,000 tons and cold rolling 300,000 tons.
   Construction content: Newly set up 150 tons electric steelmaking, 170 tons of repeated blowing converter, 170 tons VOD refining, 800-1600mm plate blank continuous casting, 800-1600mm Steckel mill, acid cleaning and cold rolling equipments.
2. Cooperation Mode: joint venture, cooperation (fund, equipment)
3. Total project investment and registered capital: Total project investment will reach 6.685 billion Yuan, of which the enterprise will self-finance 2 billion Yuan while foreign side needs to invest 4.685 billion Yuan.
4. Construction location: Inside the plant side of Jilin Ferroalloy Co., Ltd
5. Area and construction area: About 100 square meters
6. Estimated economic benefit (output value, profit): years output value: 8.67 billion Yuan, profit: 2.141 billion Yuan, tax: 707 million Yuan.
7. Estimated Investment Profit Rate and Investment Recovery Period:
   Investment Recovery Period: 7.7 years (including construction period of 2 years)

II. Chinese Party Profile

1. Enterprise name: Jilin Ferroalloy Co., Ltd.
   Legal address: No.21 Heping Street, Changyi District, Jilin City
   Legal Representative: Chang Zhenyou
2. Enterprise Profile: Now the company has a yearly production capacity of 420,000 tons of ferroalloy and transformer capacity of 287,500 kVA, and covers an area of 1.67 million square meters. With the registered capital of 633.01 million Yuan and total assets value of 222.194 million Yuan, it has a staff of 3, 661, of which there is management and engineering technical personnel of 522. Its asset-liability ratio is 58.3% with AA bank credit degree. The company has a complete quality assurance system and passed ISO 9002 quality system certification of in 2000. The quality detection center of the company passed the examination of the State Administration for the Inspection of Import and Export and was designated as the recognized lab for the import and export of ferroalloy products, and as well as a national base for developing and manufacturing the standard samples of ferroalloy.
   In 2004, the company produced ferroalloy of 387,000 tons, with the sales income 2.47 billion Yuan, the profit of 100 million Yuan and the tax of 35 million Yuan.
3. Construction and production condition available: plant land
4. Contact methods
   Mailing Add: No.21 Heping Street, Changyi District, Jilin City (Jilin Ferroalloy Co., Ltd.)
   Postal Code: 132002
   Contact Person: Wang Jinxing    Tel: 86-432-2707715              Mobile phone: 13180758028
   Fax: 86-432-2734458
   E-mail: xiaohua652000@126.net