About NEWTON RES Company

Xin Kuang Resources Co., Ltd. is the largest privately owned iron ore operator in Hebei Province, China, and the province's sixth-largest iron ore producer. The company boasts substantial ore reserves and resources, with strong growth potential driven by low production costs and rapid capacity expansion. It also enjoys abundant exploration opportunities and a strategic geographic position, enabling it to capitalize on market opportunities arising from China's robust steel‑production growth and the severe shortage of domestic iron‑ore supply—particularly in Hebei Province. Our Yanjiazhuang Iron Ore Mine is a large open‑pit operation covering approximately 5.22 square kilometers. According to an independent technical report, the mine holds measured and indicated iron‑ore reserves of about 260.0 million tonnes, equivalent to the proven and controlled iron‑ore resources of approximately 311.8 million tonnes as of December 31, 2010. Our overall target is to achieve an annual iron‑ore mining and beneficiation capacity of 10.5 million tonnes by the end of 2012. Our iron‑ore resources contain low levels of harmful chemical elements such as sulfur and phosphorus, which reduce the need for tailings treatment. Consequently, we can employ a relatively simple ore‑dressing process to produce iron concentrate with a grade of 66%. Moreover, since we utilize open‑pit mining, construction of mine infrastructure is expedited, capital expenditures are lower, and the mining process itself is comparatively straightforward. In addition, we employ cost‑effective mining and beneficiation methods, further supporting our ability to maintain low operating costs.