PRESIDENT ADDRESS

Hanking is an iron-ore focused mining company, engaging in exploration, mining, and processing of iron ores, producing high quality iron ore concentrates. Most of our products are sold to local steel-making customers within a short sale radius of 100 km around the mines, creating a unique low transportation cost advantage. As one of the largest iron ore producers in Northeastern China, Hanking has achieved rapid and sustainable development over the past decade. Through expansion of the existing iron ore mines, Hanking plans to produce over 5 million tons of iron ores in 2011 and will grow to a capacity of over 10 million tons of iron ore production by 2015.

Our iron ore concentrates have an average grade of 66% and low impurity contents of P, S, Ti and other contents. I am proudly telling you that the “Hanking Iron” has become an icon of high quality and reliability in the local iron ore consuming community. Excellence of our services has also won Hanking a trust and credibility among our customers. We will continue to enhance quality of our iron ore products and deliver the highest values to our customers.

Hanking has a reputation of creation. Given the leading position in technologies, Hanking never stops innovation and creation in all aspects of mining, processing, and exploration. Hanking has implemented the state-of-the-art technology of “dry emission” in tailings, which not only helps maximize recycle of water resources, but also reduces risks in safety management of tailing dams. Another example, Hanking has built new production lines that employ architecture of High-Pressure Grinding (HPG) technology, which has significantly improved productivity of iron ore processing and produced so-called “super iron concentrates” with an average Fe grade over 68%.

People are our first precious resource. We have built an experienced and internationalized management and technical team in exploration and development. The company's positive corporate culture greatly stimulates our staff's enthusiasm and creativity and enhances their willingness of belonging and cohesion. This in turn prompts correct and effective execution and enforcement of our goals for development and growth.

Hanking is dedicated to maintain its highest standards on safety, environmental protection, and credibility to the social public. Hanking will stick to its fundamental philosophy in construction of “Safe Mine, Harmonious Mine, and Green Mine” throughout the life of our mine operations and development. Hanking has invested heavily in safety management, mine reclamation and rehabilitation, and control systems. Hanking continues to adopt the policy of zero tolerance on ignorance of safety operating procedures and eliminate any irregularity that may cause potential injuries or life losses. Since Hanking always delivers as it promises, it has won a broad trust and support from shareholders, partners, customers, and the general public as well. We will continue to take our social responsibility through tax contribution, increase in employment, and protection of environments.