|Our mining concession area of approximately 9.6 km2 is located in Zhunge'er Banner, Erdos City, Inner Mongolia, China. The closest regional centre is Xuejiawan Town, which is 13 km northeast of our concession area. Our mining concession area lies within the triangular area defined by the Longwanggou
Detailed Exploration Area, the Heidaigou Exploration Area and the Haizita Detailed Exploration Area, in
the southern portion of Zhunge'er Coal Field.
Our mine is accessible by both railway and public roads. The Nanping Rail Line runs through our mining concession area and is adjacent to our coal washing plant. The Nanping Rail Line is a branch rail line of the Datong-Zhunge'er Rail Line, which connects to the national rail system's Datong-Qinhuangdao Rail Line. Datong-Qinhuangdao Rail Line is one of the two primary eastbound rail lines designated for coal transport, between Datong, Shanxi Province, a major coal production centre, and Qinhuangdao, Hebei Province, one of the major coal markets in China and the site of China's largest coal transshipment port. Additionally, National Highway No. 109, which connects Beijing and Lhasa, is 6 km northwest of our concession area. National Highway No. 109 connects to the Provincial Highway S103 between Zhunge'er and Hohhot, allowing ease of access to local power plants in Inner Mongolia and the PRC highway network for land transport. In addition, the National Highway No. 210, which connects Baotou and Nanning, is about 130 km west of our project site.