Mineral and project owned by the Group includes a large number of iron ore and ilmenite ore reserves and resources.

JORC Ore Reserve Estimate as of 30 June 2016 (Note: JORC ore reserves as of 31 December 2013 less exploration during the period from 1 January 2014 to 30 June 2016):

Luxing Titanium is located in Yishui County, Shandong Province, the PRC. Luxing Titanium holds a mining licence in respect of Luxing Titanium Mine issued by the Land and Resources Department of Shandong Province (山東省國土資源廳). Luxing Titanium Mine has a mining license which covers a mining area of 0.829km2. According to a resources and reserves verification report in respect of the mine, it was estimated that 0.557km2 of the mining area had approximately 46.4Mt of resources and reserves of Type 333 or above of ilmenite ores as at 31 December 2009 under PRC classification standard with an average grading of iron and titanium content of approximately 14.6% and 6.6% respectively. As at 31 December 2013, we engaged 8th Institute of Geology and Mineral Exploration of Shandong Province to complete an updated verification report and it was estimated that 0.829km2 of the mining area had approximately 57.2Mt of resources and reserves of Type 333 or above of ilmenite ores with an average grading of iron and titanium content of approximately 14.5% and 6.6% respectively.

Resources and Reserves Estimate as of 30 June 2016 (Note: Resources and Reserves Estimate from an updated verification report which was completed by the 8th Institute of Geology and Mineral Exploration of Shandong Province as of 31 December 2013 less exploration during the period from 1 January 2014 to 30 June 2016):

Gaozhuang Shangyu Ilmenite Project is located in Yishui County and Yinan County of Shandong Province, the PRC. The Company has engaged an independent third-party surveying agency to conduct preliminary exploration work in Gaozhuang Shangyu Ilmenite Project and the work was completed in 2012. The exploration rights covered an area of approximately 1.53km², with the exploration term expiring in March 2017. According to Titanium Mine Detailed Survey Report in respect of the project, it was estimated that the exploration area had approximately 46.0Mt of resources of Type 332 and 333 of ilmenite ores in September 2012 under PRC classification standard with an average grading of iron and titanium content of approximately 12.4% and 6.8% respectively. During the period from October 2012 to June 2016, there was no change in resources and reserves. The Group did not have any plans to carry out mining work or any other expansion plans.

As at 30 June 2016, Ishine International owns three granted exploration licences located in Western Australia, Australia.

Mt. Watson has been under the process of drilling during 2013. The Mt. Watson Project (the “Project”) is a joint venture between Ishine International (70%) and Kabiri Resources Pty., Ltd. (“Kabiri Resources”) (30%). The Project is situated approximately 120km north of Mt. Isa in north-west Queensland and comprises of two tenements (EPM15933 and EPM15986) covering an area of 103.6km². Seven diamond drillholes (totalling 921.80m) were drilled on tenement EPM15986 and were previously identified as versatile time domain electromagnetic survey (VTEM) anomalies at around 5km to the south-west of the Mt. Watson copper mine. The detailed drillhole coordinates, drilling orientation and drillhole locations are disclosed in the announcement dated 21 March 2014 on Australian Securities Exchange (“ASX”). For details of the Project, please refer to the announcement of Ishine International dated 21 March 2014 published on the website of the ASX.

There was no other exploration activity in Australia during the six months ended 30 June 2016.

The following tables are summaries of Ishine International’s tenements in Australia:

Western Australian Tenements