OREANDA-NEWS. November 28, 2011. Burwill Holdings Limited (the “Company”) is pleased to announce the latest operation update on magnetite iron ore mine in Laiyang City, Shandong Province. The relevant information is 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 may 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:

Owing to the external dam expansion of tailing dam of the No. 1 processing plant and the dam heightening reinforcement works of tailing dam of the No. 2 processing plant in accordance with local safety regulatory requirements, the operation of the two processing plants are intermittently halting.

At present, nearly 80% dam heightening reinforcement works of the tailing dam of the No. 2 processing plant has been completed and the overall project is expected to be completed in the near future. After security inspection on the tailing dams by local safety supervision department and with the issue of the safety production permit, the processing plant will be put into production.

About 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. The exploration of three mining areas is proposed to be conducted gradually and therefore, the resources level would then be raised. The two processing plants have been built up. Following further development of the mine and production commencement of the processing plants, economies of scale will be achieved.