Business Setup

Young Fan

President and CEO

Young’s Refectory Materials Inc.

No.1, Men’s Avenue, Zhongshan District

Dalian, Liaoning Province

Tel:0411-286-5151

Email:Youngl@youngrm.com

Date: September 18,2001

Eric H. Williams

Purchasing Manager

North American Minerals

905 48^th Avenue

New York, N.Y. 10159

Tel(212) 490-2456

Email: Ericw@yahoo.com

Subject: Business Setup

Dear Mr. Eric H. Williams,

It was nice talking to you about our business establishment on the plane from New York to Hong Kong before the 2001 Christmas.

China is emerging. The People’s Republic of China could very well be considered the largest untapped mineral and metal resource in the world for the 21^st century. The proven reserves of antimony, barite,bauxite, fluorspar, graphite, lithium, magnesite, mercury, molybdenum, phosphate, pyrite, rare earths, talc, tin, titanium, tungsten, vanadium and zinc are among the largest in the world.

Any company involved in the purchase or supply of industrial raw materials has undoubtedly followed the phenomenal growth of some of the Chinese mineral commodities, where growth in production of more than 300 percent has occurred during the last ten years in the last century, for commodities like barite, cenment, gold, gypsum, silver and talc. Others, like bauxite and phosphate, experienced production increases in one year alone of over 75 percent, from 1990 to 2000.

America has been boomed during the last decade, now “America is sinking, the Chinese is rising”. Maybe this prediction in the last issue of Business Week is right, however there is undoubtedly a fact that the Chinese successfully completed her 9^th five-year development binge. Eric, I wish that America and China shall be on the same boat to march on toward the 21^st century and your company and my company shall share the 10^th five-year economic boom in the following years. My company was credited AAA by Morgan-Stanley in 1999. We deal with all the products mentioned above. I shall designate Mr. Ma Jun, a high efficient materials manager, to get contast with you. I believe you two will create some quickness for both of our companies. Should you have any questions, please fell free to ask me.

Yours Sincerely,

Young Fan

President and CEO

Young’s Refectory Materials Inc.

cc:mj