GREEN CONSTRUCTION PRODUCTS FUXIN FU JIA DE No.

58, Gaosun Road, Taiping, Fuxin, Liaoning, China, 123000

Introduction Fuxin Fujiade Green Construction Products Ltd. (hereby the Company) was established on December 8th, 2009 by Liaoning Chaoyi Industry and Trade Group Co., Ltd. (70% of shares) and Canada Royal Western Coast Limited (30% of shares) with $4.35 million registered capital in cash. The scope of business includes production of environmental protection building materials, and real estate development. The picture on the right is from the signing ceremony for the establishment of the Company.

Liaoning Chaoyi Industry and Trade Group Co., Ltd. Liaoning Chaoyi Industry And Trade Group Co., Ltd. (hereby the Group) is one of the largest private enterprise in Liao Ning Province. The scope of business includes mining, electricity generation, heat supply, environmental protection building material, product of steel, spinning, weaving, wool trade, and loan service. Including the Company, the Group has seven major subsidiaries. The Groups registered capital is over $27 million.

Liaoning Chaoyi Industry And Trade Group Co. Ltd.

GREEN CONSTRUCTION PRODUCTS FUXIN FU JIA DE No.58, Gaosun Road, Taiping, Fuxin, Liaoning, China, 123000

The Groups subsidiaries SUBSIDIARIES REGISTERED CAPITAL Fuxin Longxing Coal Mining

TOTAL ASSETS

INFORMATION Founded on November 17, 2003 Main business: coal exploitation Annual volume: 60,000 tons Founded on January, 2005 Main business: coal exploitation Annual volume: 50,000 tons

$1.3 million

$3 Million

Fuxin Longsheng Coal Mining

$16,000

$800,000

Fuxin Jie Chao Coal Gangue Heat and Electricity Limited

$8.5 million

$82.4 million

Founded on October, 2006 Main business: electricity generation, heat and stream supply Annual electricity generated: 240 million kilowatt-hours Annual heat supply area: 4.2 million square meters Total employees: 442 Founded on August, 2003 Main business: scouring and wool top manufacture Two scouring production lines with 3000 tons of annual volume make it the largest scouring base in north China Three wool top production lines produce over 2000 tons of wool tops.

Fuxin Chaoyi Wool Industry Limited

$690,000

$38 million

Fuxin Chaoyi Xihe Petty Loan LTD.

$27 million

$27.5 million

Founded on August 18th, 2009 Main business: Petty loan Annual revenue: $17.5 million

Fuxin Qixie Financing Guarantee LTD.

$16.4 million

$14.6 million

Founded on May 22nd, 2011 Main business: guarantee of loan and credit, acceptance of bill, trade, project finance, balance payment, etc. Annual revenue: $17.5 million

GREEN CONSTRUCTION PRODUCTS FUXIN FU JIA DE No.58, Gaosun Road, Taiping, Fuxin, Liaoning, China, 123000

Environmental Protection Building Material Manufacturing Environmental Protection Coal ash is the major waste discharged by Coal-fired power plants. In 2005, China discharged the most amount of coal ash in the world, 160 million tons. The ash will cause severe dust and air pollution if it is not treated properly. If the ash gets into water, not only will it block rivers but also the poisonous chemicals will danger human being and various living beings. Therefore, proper treatment of discharged coal ash has drawn great attention. One of the solutions is to use coal ash as raw material of building materials. This is considered an effective treatment because large amount of coal ash will be consumed without secondary pollution. The pictures on the right show the rivers polluted by the coal ash from heat and electricity generation facilities.

Outlook Liaoning Province is one of the traditional industrial bases in China. The provincial government encourages enterprise and products upgrade through modifying industrial structure. Coal-ash environmental protection building materials have earned substantial support from provincial government since this project is very suitable for the City of Fuxin whose major industries are coal and electricity related. It is a great opportunity to develop a non-coal related industry and become a model for those cities seeking for economic transition after resource exhaustion. In order to encourage the environmental protection industry, the provincial government has started prohibiting the use of traditional building bricks made from red soil.

The picture above was taken in summer 2011 when a group of government officials visited the Company, including Vice Governor of Liaoning Province, Lu Xin, Vice Mayor of Fuxin City, Li Mingshan, and Municipal Party Vice Secretary, Pan Guoli.

GREEN CONSTRUCTION PRODUCTS FUXIN FU JIA DE No.58, Gaosun Road, Taiping, Fuxin, Liaoning, China, 123000

Research and Development Coal-ash building materials can be used in various kinds of construction projects in different ways. Currently, except for producing coal-ash light heatpreservation building blocks and environmental floor tile, the Company is working on research and development of using coal ash on new concreterelated products and prefabricated panels. In the meantime, the Company also plans to acquire the technology used for other building products with different materials which can be used for coal-ash building products manufacture with proper modification and improvement. Furthermore, the Company is negotiating a cooperation agreement with a global well-known building material manufacturer about developing manufacturing equipment for coal-ash building products and a joint venture project to produce such equipment.

Market Expansion In 2011, 73% of electricity was generated through thermal power generation and coal ash was the only solid remain. During the same period, the construction area for new homes was over 5 billion square meters in China, which brought the building material market demand to a historical high point. Since the transportation cost for building materials is extremely high, the Companys current product can only be sale within a radius of 200 kilometers, the break-even point regarding to the transportation cost. Therefore, the Companys strategy is to find thermal power manufacturing enterprises in Chinas second- and third-tier cities, build coal-ash building material manufacturing bases with equipment developed by the Company, and start a real estate development project using the coal-ash building materials produced by the manufacturing bases for construction. As a result, the Companys profit can maximize its profit through minimizing its cost for each link of this industry chain.

Coal-ash building brick can be used for different kinds of construction projects.

GREEN CONSTRUCTION PRODUCTS FUXIN FU JIA DE No.58, Gaosun Road, Taiping, Fuxin, Liaoning, China, 123000

Real Estate Development Fuxin Liuhe East City Fuxin Liuhe East City (hereby the Project) is located at the center of City of Fuxin. The land size is over 112 thousand square meters and construction area is over 317 thousand square meters. The project has been approved by the provincial and municipal government. The total investment is over $100 million and construction loans have been approved also. The Construction will start in summer 2012 and finish early 2014.