MEASURES FOR QUALIFICATION REGISTRATION OF GEOLOGICAL RECONNAISSANCE

The Ministry of State Land Resources

Notice of the Ministry of State Land Resources on Printing and Issuing Measures for Qualification Registration of Geological Reconnaissance

Guo Tu Zi Fa [2003] No.218

The ministries of state land resources of every province, autonomous region and municipality directly under the Central Government
(the ministry of state land environment resources, bureau of state land resources and housing, bureau of housing and land resources,
bureau of state land resources and planning):

In order to standardize the conditions for the access to geological reconnaissance market, to maintain the market order of geological
reconnaissance, to strengthen the supervision of the ability of the geological reconnaissance and to promote the development of geological
reconnaissance work, in accordance with regulations of the Mineral Resources Law of the People’s Republic of China and the Measures
for Registration Administration of the Reconnaissance Blocks of Mineral Resources, the ministry decided to set up registration system
and formulated Measures for Qualification Registration of Geological Reconnaissance, the measures are hereby printed and issued,
please carry out.

The Ministry of State Land Resources

June 24, 2003

Measures for Qualification Registration of Geological Reconnaissance

Article 1

In order to standardize the conditions for the access to geological reconnaissance market, to maintain the market order of geological
reconnaissance and to promote the development of geological reconnaissance work, the Measures are hereby formulated in accordance
with the Mineral Resources Law of the PRC and the Measures for Registration Administration of the Reconnaissance Blocks of Mineral
Resources.

Article 2

Registration shall go through in compliance with the Measure for obtaining the qualification certificates of geological reconnaissance
in case geological reconnaissance is undertaken in the territory and other sea jurisdiction of the PRC.

Article 3

The qualifications for geological reconnaissance are classified by nature of the professions of geological reconnaissance and the
registration should be kept according to the requirements of geological reconnaissance capability and level.

The professional classifications of the qualifications for geological reconnaissance and the conditions for registration are separately
promulgated.

Article 4

The Ministry of State Land Resources and the administrative departments of sate land resources of the people’s government of provinces,
autonomous regions and municipalities directly under the Central Government are the registration authorities of the qualifications
for geological reconnaissance.

The scope of functions of the Ministry of State Land Resources is as follows:

(I)

Registration of the qualifications for oceanic geological survey, oil and gas mineral reconnaissance, aviation physical geographical
reconnaissance, and aviation remote sensing geological reconnaissance;

(II)

Summarization, publication and provision of query services of information on registration of the qualifications for geological reconnaissance
of the whole country;

(III)

Supervision management on the registration of qualifications for geological reconnaissance by the administrative departments of sate
land resources of the people’s government of provinces, autonomous regions and municipalities directly under the Central Government
as well as the qualifications for geological reconnaissance of the whole country.

The scope of functions of the administrative departments of sate land resources of the people’s government of provinces, autonomous
regions and municipalities directly under the Central Government provinces, autonomous regions and municipalities directly under
the Central Government is as follows:

(I)

Registration of the qualifications for geological reconnaissance other than that specified in Item (I) of the above-mentioned clause
of this article;

(II)

Summarization, publication and provision of query services of information on registration of the qualifications for geological reconnaissance
in the corresponding administrative divisions;

(III)

Supervision management on the registration of qualifications for geological reconnaissance in the corresponding administrative divisions.

Article 5

The applicants for geological reconnaissance qualifications shall be enterprises or institutional unites directly engaged in the undertakings
of geological reconnaissance, which besides the requirements for a legal person shall meet the following conditions for the geological
reconnaissance qualifications.

Article 6

In applying for the geological reconnaissance qualifications, the applicant shall provide the registration authority with the following
materials:

(I)

Application for qualification registration of geological reconnaissance;

(II)

Documents or copy of the certification of the legal person;

(III)

Documents or copy of the positions of the legal representative and the responsible technological persons;

(IV)

Documents or copy of the certification of assets;

(V)

Name list of technicians and copies of the technical post_title and qualifications of senior and medium-level technicians;

(VI)

List of the main reconnaissance instruments and equipment;

(VII)

Other necessary materials required for submission by the registration authority.

In case of application for the qualification of oil and gas mineral reconnaissance, the documents or copy of the approval of the State
Council should be submitted for establishment of oil companies or consent of oil and gas mineral reconnaissance.

Article 7

Within 30 days upon receipt of the application for qualification registration of geological reconnaissance, the registration authority
shall check and verify the truthfulness of the application materials, and draw conclusions on whether or not the registration is
qualified in compliance with the requirements for the conditions of the geological reconnaissance qualifications, together with notices
given to the applicant.

If modification or supplementary materials are required from the applicant, the registration authority shall notify the applicant
of modification or supplementation within the term specified.

In case the registration conditions meet the requirements, the applicant shall within 30 days upon receipt of the notice handle with
the registration formalities and obtain the qualification certificates of geological reconnaissance and become the registered entity
eligible for geological reconnaissance, which can undertake the geological reconnaissance work by force of law within the registration
scope.

In case of failure to meet the registration requirements, the registration authority shall provide the applicant with the reasons
thereof.

Article 8

The qualifications of geological reconnaissance adopt the uniform inspection system at the intervals of inspection once two years
to be executed in December. And the uniform inspection work will be in the charge of the registration authority.

At the time of uniform inspection the registration holder shall carry the qualification certificate of geological reconnaissance (original
and duplicate) and fill in and submit the Uniform Inspection From of Geological Reconnaissance at the original registration authority
and accept the uniform inspection.

In qualified for the uniform inspection, the registration authority shall cover the special stamp on the qualification certificate
of geological reconnaissance (duplicate), and if not qualified, the registration authority shall proceed in compliance with the provisions
of Article 9 of the Measures.

In case of failure to accept the uniform inspection beyond the time schedule, the qualification certificate of geological reconnaissance
will automatically become invalid.

Article 9

in case of any of the following circumstances during the uniform inspection, the uniform inspection authority shall proceed as degrading
of the qualifications, and notify the inspected to handle with the formalities for alteration of the registration.

(I)

When the reconnaissance capabilities are lower than the requirements of the corresponding classifications;

(II)

Having not undertaken such classification of geological reconnaissance activities consecutively for two years;

(III)

Material negligence or violations of law in some type of reconnaissance works.

In case of any of the circumstances specified in Article 16 of the Measures, the registration authority will revoke the registration
qualifications and proceed according to Article 6 of the Measures.

Article 10

Eligible for the following conditions, the registration holder may apply for adding the business scope at the original registration
authority and verified in compliance with the requirements of the registration conditions, the original registration authority shall
notify the registration holder to handle with the formalities for alteration of the registration.

(I)

Expiry of two years of various reconnaissance works with qualified uniform inspections;

(II)

The working capacity for newly added reconnaissance work having reached the corresponding conditions and requirements of the added
business items; and

(III)

Free of material negligence or violations of law in various reconnaissance works.

Article 11

In any of the following cases, application should be made to the registration authority within 30 days for handling with the formalities
for alteration of the registration.

(I)

Consolidation, separation and renaming of the legal person;

(II)

Alteration of the domicile of legal person and the legal representative;

(III)

Addition or reduction of business classifications;

(IV)

Alteration required for by the laws, administrative regulations, rule and stipulations.

Article 12

In case of loss of the qualification certificates of geological reconnaissance (original and duplicate), announcement must be made
on the media designated by the Ministry of State Land Resources before application is made at the original registration authority
for handling with the formalities for repeated issuance of the certificates.

Article 13

The applicant shall provide the registration authority with true registration materials without any falsehood, and may not refuse
the inspection.

The registration authority should keep confidential the applicant’s materials relating to commercial secrets.

Article 14

The administrative departments of sate land resources of the people’s government of provinces, autonomous regions and municipalities
directly under the Central Government shall in the first month each year submit the Ministry of State Land Resources with the annual
reports of the previous year on the administration of the qualification registration of geological reconnaissance, which annual report
shall include: work survey, main achievements, existing issues, working plan, opinions and suggestions of the coming year.

Article 15

The registration authority shall regularly make random sampling inspection and evaluation on the professional capabilities and performance
of the registration holder and set up the practice archives thereof, and their practice behaviors, reputation maintenance, results
of sampling evaluation, social claims and defaults should be recorded in their practicing archives.

Article 16

In any of the following cases on the part of the registration holder, the registration authority shall not grant it with the qualification
registration of geological reconnaissance for three years.

(I)

Conceal of facts and falsehood in the relevant materials;

(II)

Failure to handling with the formalities for alteration of the registration in compliance with the relevant provisions of the Measures;

(III)

Participating in the reconnaissance without the license for mineral resource reconnaissance or undertaking of reconnaissance by tort;

(IV)

Subcontracting the implementation to the unit or individual without the qualification certificates of geological reconnaissance;

(V)

Undertaking of geological reconnaissance beyond the approved scope of reconnaissance;

(VI)

Mortgage, leasing or transferring of the qualification certificates of geological reconnaissance;

(VII)

Other material negligence or violations of law; or

(VIII)

Noncompliance with the professional ethic standards or breach of the principle of good faith.

Article 17

In case of abuse of positions for private purposes on the part of the workers of the registration authority that constitutes a crime,
criminal responsibilities shall be prosecuted, and in case no crime has been constituted, administrative punishment may be accorded
buy force of law.

Article 18

The qualification certificates of geological reconnaissance are divided into originals and duplicates, which are equally authentic.

The qualification certificates of geological reconnaissance are not restricted by administrative divisions, which are valid throughout
the country.

Article 19

The qualification certificates of geological reconnaissance are uniformly printed by the Ministry of State Land Resources, which is
in charge of uniformly formulating the application forms of the qualification registration of geological reconnaissance, the forms
for uniform inspection of the qualifications of geological reconnaissance, the special stamp for the qualification registration of
geological reconnaissance, and the special stamp for the uniform inspection of the qualifications of geological reconnaissance.

Article 20

In case of registration by the administrative departments of sate land resources of the people’s government of provinces, autonomous
regions and municipalities directly under the Central Government in violation of the provisions of the Measures, the Ministry of
State Land Resources is enpost_titled to make corrections thereof.

Article 21

Foreign investors and investors from Hong Kong, Macao and Taiwan that apply for registration of the qualifications of geological reconnaissance
shall proceed in compliance with the provisions of the Measures and special provisions, if any, specified by laws and administrative
regulations shall apply.

Article 22

Those entities that have obtained the qualification certificates of geological reconnaissance prior to the implementation of the Measures
shall apply with the registration authority for registration in compliance with Article 4 of the Measures, and by the end of the
registration work, the previous qualification certificates of geological reconnaissance will become invalid automatically.

Article 23

The Measures shall come into force as of the date of promulgation.