CIRCULAR OF THE MINISTRY OF FINANCE, THE STATE ADMINISTRATION OF THE TAXATION OF THE PEOPLE’S REPUBLIC OF CHINA, ON ADJUSTING THE TAX POLICY ON RESOURCE OF MOLYBDENUM ORE AND OTHER RESOURCES

Ministry of Finance, the State Administration of the Taxation

Circular of the Ministry of Finance, the State Administration of the Taxation of the People’s Republic of China, on Adjusting the
Tax Policy on Resource of Molybdenum Ore and Other Resources

Cai Shui [2005] No.168

The Financial Offices (Bureaus) in all the provinces, autonomous regions, municipalities and separately listed cities, local taxation
bureaus:

In accordance with related regulations of Provisional Regulations of the People’s Republic of China on Resource Tax, and the practical
situations of related enterprises, decisions are made as follows:

1.

Preferential policy of 30% Resource Tax off on the non-ferrous metal ore shall be abolished.

2.

Resource Tax Policy on Iron ore shall be temporarily reduced to 60% of the standard.

3.

Resource Tax Policy on Molybdenum Ore shall be adjusted: 8 yuan per ton for first grade, 7 yuan per ton for second grade, 6 yuan per
ton for third grade, 5 yuan per ton for forth grade and 4 yuan per ton fifth grade.

4.

Resource Tax Policy on Manganese Ore shall be adjusted to 6 yuan per ton.

5.

This announcement shall be implemented as of January 1, 2006.

Please act accordingly.

Ministry of Finance

State Administration of the Taxation

December 12, 2005