About NEWTON RES Company

New Mining Resources Co., Ltd. is the largest private company in Hebei Province, China and the sixth largest iron ore operator in the province. It has huge ore reserves and resources, enhances growth potential through low production costs and rapid increase in production capacity. It also has a large number of exploration opportunities and geographical advantages, and has been able to seize market opportunities in China (especially Hebei Province) due to the strong growth in steel production in China and the serious shortage of local iron ore supply. The Yanjiazhuang Iron Mine, which we own and operate, is a large-scale open pit iron ore area, covering an area of about 5.22 square kilometers. According to an independent technical report, the Yanjiazhuang iron ore has a confirmed and estimated reserve of about 260 million tons, which is calculated from the proven and controlled amount of iron ore resources of about 311.8 million tons on December 31, 2010. Our overall goal is for iron ore mining and washing production capacity to reach 10,500 thousand tons per year by the end of 2012. The content of harmful chemical elements such as sulfur and phosphorus in our iron ore resources is low, which can reduce the need for tailings treatment, so we can produce iron powder with an iron grade of 66% using a relatively simple iron ore washing process. Since we use open pit mining to mine resources, the construction time for mining infrastructure is shorter, capital expenditure requirements are lower, and the iron ore mining process is relatively simple. In addition, low-cost mining and washing methods are also used to mine and wash iron ore. Based on these facts, we believe mining costs can be kept low.