Sinovus Mining Limited

1.1 Introduction

　　Sinovus Mining Limited (SML) is a  Australian public company, it was formed in August 2006 with the specific intent to acquire and develop high value precious metals and mineral projects in China. SML specialises in Chinese opportunities that have gone unexploited due to a lack of capital resources and / or modern exploration technology. After several years of work, SML has designed and constructed a unique approach to unlocking undervalued opportunities within China.

　　The Company is building a talented and experienced team to drive its projects through use of strong relationships with local partners. SML will continue to identify and acquire quality resource projects.

　　The Directors of Sinovus Mining Ltd believe that the Company has an excellent platform for substantial growth underpinned by a sound program for project acquisition, mineral exploration and development in China’s most promising regions.

1.2 Current Projects & Efforts

　　By way of its directors’ close association and work in China since the mid-1980s, SML has now:

　　1) established a Sino-Australian Co-operative Joint Venture,Hebei Sinovus Mining Co.Limited Xiangguang silver (Ag) and manganese (Mn) deposit as an emerging producer in Hebei Province.

　　2) established another Sino-foreign joint venture with a commercial entity of the Heilongjiang Bureau of Geology and Mineral Resources (“Heilongjiang BGMR”). Heilongjiang Dragon State Resources Co Limited Through this joint venture with Heilongjiang BGMR, SML has secured access to exploration licences and associated subsequent mining rights over a considerable exclusive area of 84,600 square kilometres in the Daxing’anling region of Heilongjiang Province. In the opinion of the SML Directors, this unique opportunity ranks as a premium gold exploration asset.

　　3) Developed a network and expertise within China to ferret out and acquire high value exploration and emerging producer opportunities. It is SML’s intent to expand its reach within China, and to add additional projects into its stable that will be able to further leverage SML’s ability to supply proper focused capital resources and modern technology to unlock economically attractive mineral resources. Other specific projects under current consideration include coal, gold and other mineral opportunities.

1.3. Xiangguang Silver and Manganese Project

　　The Xiangguang silver and manganese deposits are located in northern Hebei Province, a short2-hour drive west of Beijing (see maps and below).

　　SML’s Directors commissioned its geologist (L W Davis) to China in August 2006 to complete a preliminary due diligence investigation and assessment of this opportunity.