The Company believes that maintaining high standards in environmental protection and cultural sensitivity is critical to its long-term success. The Company has adopted advanced technologies such as the recycling and reuse of water in the flotation process as well as dry heaping of tailings at the Jiama Mine to minimize the impact of its operations on the environment. The Company has also made substantial efforts to integrate with the local population in the areas where its mines are located and assisted them in advancing social and economic development. Such efforts are recognized by the local government and population in Inner Mongolia and Tibet, both of which are autonomous regions with a large minority ethnic population. The Company intends to continue to undertake best international environmental and cultural practices.