Yantai Yuancheng Gold Mining Co., Ltd. and YanTai Yuancheng Enterprise Group CO., LTD. (SHSE:600766) entered into a framework agreement to acquire 10% stake in Xinggou Hengxin Mining Co., Ltd. from Zhu Zuguo for CNY 50 million on August 2, 2012. The supplemental framework agreement has been signed between the parties on August 11, 2012. If during the first fiscal year of the purchase of 10% stake Yantai Yuancheng Gold Mining and YanTai Yuancheng Enterprise Group do not have a distributable income, Zhu Zuguo is willing to buyback the shares for double the transfer price. The transaction is subject to approval of Xinggou Hengxin Mining shareholders.

Yantai Yuancheng Gold Mining Co., Ltd. cancelled the acquisition of 10% stake in Xinggou Hengxin Mining Co., Ltd. from Zhu Zuguo on January 14, 2013. Post termination, Zhu Zuguo shall pay CNY 10 million as compensation for the termination of agrement. Yantai Yuancheng Gold Mining Co., Ltd. and Zhu Zuguo are committed not to seek legal action to each other on the termination of the agreements.