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Yaoan Feilong Mining Co., Ltd., a wholly-owned subsidiary of the Group, is located at Wenhua Village, Taiping Town, Yaoan County, Chuxiong City of Yunnan Province, and principally engaged in the exploration, mining, processing and sale of metals resources including lead and silver. 

The total investment of the company amounted to RMB34.8 million with a registered capital of RMB17.4million. The Laojiezi Lead Mine has an area of 0.9948 square kilometers. The processing plant has two production lines, which can process 900 tons of run-of-mine (“ROM”) ore per day. 

The mine of the company has two mining shafts which adopt of combined driftsandinclinesas exploration method. The scale of mining is 100,000 tons of ores per year.  

In 2013, the company invested in and has completed the construction of tailings warehouse in Zhangjiaqing which has a capacity of 2.548million cubes. It has a useful life of 12.9 years and will be able to fully satisfy the tailings discharge needs of the mine within the exploration period.