Fushan International Energy Group Limited is one of a few integrated coal operators in the PRC in possession of a complete production chain from coal resources, coal preparation plants to coke plants. Following the acquisitions of the three quality coal mines in Liulin County, Shanxi Province, the results of the Group for the year 2008 saw a successful turnaround. Turnover of the Group surged remarkably by 126 times in just five months upon completion of the acquisition. By virtue of the strategic plans of the management, the coal business of the Group will sustain continuous momentum.

In order to diversify income source for better profitability and competitiveness as a whole, the Group has pressed ahead to develop one-stop operation and capitalized on its abundant coal resources to further expand its business to the more promising clean coal production arena. Aligning to its development strategy of changing its clientele from mid and small scale steel plants as well as coal chemical plants to sizable steel and iron manufacturers, the Group is also committed to developing an extensive customer network for further stabilization of income source.

Looking forward, though the financial tsunami is yet to come to a halt, the Group believes that it can stand against strikes. The macro economic policy of the PRC government will spur infrastructural development. As the major raw materials in the infrastructural industry, demand for coking coal products of the Group will surge, leveraging on the infrastructural development and economic recovery in the PRC. As the PRC government has speeded up the integration of coal resources, the Group actively identifies suitable projects, especially projects which have commenced operation, for acquisitions. It is the Group's intention to boost the expansion of coal reserves and deliver actual earnings to the Group earlier.

Being one of the largest coking coal enterprises in central western China, the Company will continue to focus on Shanxi Province as the major investment and development base. In order to maximize profits, the Group will seize opportunities, accelerate its pace of growth, proactively implement its merger and acquisition strategy, speed up the application procedures of mining rights certificate for the new coal mine, duly perform its social responsibility and put efforts in production safety and environmental protection.