First drilling obligationThe Company will carry out a drilling...

First drilling obligation
The Company will carry out a drilling program to drill at least 100 holes over 18 months from the date of the
Balmoral Acquisition Agreement within the Mining Area. Once an additional 1 billion tonnes of magnetite ore
(on top of the 1 billion tonnes made available to Sino-Iron) are identified by the Company after commencement
of the drilling program, the Company will be under an obligation to acquire Balmoral subject to the consent
from the Treasurer of Australia and pursuant to the Balmoral Acquisition Agreement as detailed below. The
estimated cost for the drilling program under the first drilling obligation is approximately A$5 million
(approximately HK$28 million).