OREANDA-NEWS.  August 22, 2012. 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 is reported in summary format and may not be comprehensive. 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:

For the Tai Xin magnetite iron ore mine which the Group holds 70% of its equity interest, following the completion of heightening and reinforcement works etc. for the tailing dam of the No. 2 processing plant as required by the local safety supervision department in April 2012; and the safety inspection successfully passed by the local safety supervision department and an independent third party expertise in June 2012, a safety production permit has been obtained on 2 August 2012.

The abovementioned project has currently started to undergo inspection and maintenance for its production equipment in the processing plant as well as drainage of the tailing pipes, and is at the preparatory stage to resume production.

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, MineralResources 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 resumption of production of the processing plants, economies of scale will be achieved.