The Company is establishing longstanding strategic relationships with other power operators, financial sponsors, suppliers, subcontractors and government that will ensure the Company's successful development of alternative power generating facilities across China.

Specifically, under the Construction Agreement, Huaxian has granted to China Power: 1) the exclusive right to develop and construct a 50 megawatt biomass energy power plant, 2) the land rights for up to 200 MU, or 133,400 square meters of land, to develop a biomass energy power plant.

In addition to the foregoing, according to the China Central Government's alternative energy to Biomass Energy Projects, under the Construction Agreement, Huaxian has guaranteed China Power:

(i) the financing for up to 65% of the 580 million Yuan needed by China Power through a local bank at a preferred interest rate for construction and development of Huaxian Biomass Energy Power Generation Plant (50MW),

(ii) that 100% of the power generated by the Biomass Energy plant shall be purchased by the China State Grid at a purchase price of between 0.60 and 0.65 Yuan, or approximately $0.09 and $0.08, per kilowatt,

(iii) this Huaxian Biomass Energy Power Generation Plant/project (50MW) has been designated with a total of 400 million KW/hr power generation capacity annually,

(iv) China Power's rights under the Construction Agreement are exclusive,

(v) conversely, China Power has committed to invest up to 580 million Yuan, or approximately $81,586,000 towards the development of the power plant.

The Construction Agreement also provides that Huaxian shall be responsible for securing all necessary government approvals and ensuring the supply of all required utilities, such as electricity, water, communications and roadways, and China Power shall be responsible for obtaining all required financing for the plant and operating the plant with the most advanced technology available. The construction of the plant is estimated to take approximately two years.

The Company is developing its Alternative Energy Projects and Pipeline in Biomass Energy Power Generation Plants and Hydropower Plants in hopes of reaching a total Potential Power Capacity of 3200 MW by the year 2013 via Merger and Acquisitions (M andA), Joint-Venture Partnerships with Biomass Projects and Hydropower Plants and companies, governments in China, or/and worldwide.

The Company's Advanced Renewable Energy Strategy and Plan in Hydropower Plants and Biomass Energy Power Generation Plants will enhance the technical, social, and environmental benefits of Biomass Energy /hydropower and provide investment and business opportunities in the cost-competitive Biomass Energy /hydropower capacity energy supply in China as well as around the world, which will increase the Company's worldwide shareholders' value in the long term.

The Company's objective is to achieve long-term capital appreciation through investment in companies and other entities with significant assets, investments, production activities, trading or other business interests in China, or/and worldwide, or/and which derive a significant part of their revenue from China, or/and worldwide.

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