OREANDA-NEWS. April 25, 2011. Burwill Holdings Limited (the “Company”) is pleased to announce the latest operation update on Tai Xin magnetite iron ore mine in Laiyang City, Shandong Province. The relevant information will be reported in summary format and may not be comprehensive, reported the press-centre of Burwill Holdings.

Taking into consideration constraints such as market competition or confidential business information, the Company will provide updates on those matters which the management considers crucial to shareholders’ interest. Directors of the Company summarize those matters considered to be crucial as below:

No. 1 Processing Plant
The annual processing capacity is 1.5 million tons. The production has commenced at a normal condition. Disregarding the impacts of severe cold weather, power cuts and other factors beyond the Company’s control, the utilization rate of the equipment reached above 90% over the last three months. Currently, the daily output of iron concentrate is approximately 400 tons.

No. 2 Processing Plant
The annual processing capacity is 5 million tons. The plant is in ramp-up phase as planned, and is now load-testing individual systems. The Company expects that the full production will commence in June 2011.

Preservation of mining rights
In January 2011, the Company received a consolidated exploration permit granted by the Office of Land and Resources of Shandong Province, successfully integrating the individual exploration permits of four stand-alone mining tenements. Such permit covers an area of 26.8 square kilometers. The Company plans to invest RMB 30 million on intensive explorations at five tenements including Lujiazhuang and Tiejiangzhuang, to locate higher-graded ores, and to raise the production efficiency of the two existing plants, as well as to prepare for the construction of No. 3 and No. 4 processing plants. Furthermore, the Company expects that the consolidation of mining permits for the above-mentioned tenements will be completed in the second half of 2011 and such consolidation will pave the foundation of subsequent large-scale mining.

Maintenance of mining tenements
The daily ore mining capacity has reached 20,000 tons at present, which can fully meet the demands of normal production at No. 1 and No. 2 processing plants. In 2011, the Company will further carry out topsoil stripping at various mining areas for a total of 2.33 million cubic meters in order for the preparation of the increasing mining volume.

No. 3 Processing Plant
It is at the stage of project planning and plant design. Preparatory works including preliminary exploration, application for building permit and tendering for equipment and construction, etc. will be carried out in the second half of 2011.

About Tai Xin Magnetite Iron Ore Mine in Laiyang City, Shandong Province:
Located in between Yantai and Qingdao, the mining area is 15 km northwest to the Laiyang City of Shandong Province, PRC. Transportation is convenient, supply of water and electricity are adequate. The topography in the area is beneficial for mining and tailings discharge. By the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC), the project has initially identified iron ore resources of 640 million tons. There are three other tenements to be explored; which will potentially raise the resources level at the area. Following further development of the mine, completion of the processing plants, and their commencement of production, economies of scale will be achieved, bringing a positive impact to the Burwill Group’s profit and business model.