OREANDA-NEWS. August 30, 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, reported the press-centre of Burwill Holdings.

The relevant information will be reported in summary format and may not be comprehensive. 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:

Safety Inspection Passed for No. 1 Processing Plant
No. 1 processing plant of Tai Xin magnetite iron ore mine has conducted internal safety check and was passed safety assessments from Government authorities, and has returned to normal operation. Tai Xin seized the opportunity to conduct annual equipment maintenance during the inspection period.

Safety Production Permit
After obtaining the mining license of Dawangjia tenement, Tai Xin has obtained Safety Production Permit issued by Shandong Provincial Administration on Production Safety, validity till the end of April, 2014. As such, Tai Xin can officially commence mining operations in the related mining areas.

Operative Exploration
Tai Xin has engaged a qualified geological exploration team to commence intensive exploration in Lujiazhuang tenement since July. The intensity of exploration starts from 200x100 meters and will increase to 100x100 meters; the initial depth control is between 150 to 300 meters. So far some high quality ore materials have been found at the sub-surface layer, with further sampling and data compiling still in progress. Exploration is expected to last for several months and provides a good foundation for the future mining operations.

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. Exploration has been commenced gradually in three mining areas for which the resources level would then be potentially raised.

The two processing plants built recently would reach annual processing capacity of 6.5 million tons of iron ore. 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.