Magnesium Segment

Magnesium is the lightest and strongest of the structural metals; it is one fourth the weight of steel, two fifth the weight of titanium and two thirds the weight of aluminum. Magnesium is used in a variety of markets and applications due to the physical and mechanical properties of the element and its alloys. Magnesium ingots are the feedstock for the manufacturing process of aluminum and titanium alloying. Magnesium powder and granules are used as desulphurizer that removes sulfur in the production process of steel. And various types of magnesium alloys which are produced from pure magnesium ingots are used in aircraft, automobile parts, and in electronic equipment such as computers, cameras and cellular phones. Due to its unique light weight and high strength properties, magnesium's demand is on the rise.

We currently operate six magnesium facilities in China within our Magnesium segment that produce and/or distribute magnesium products such as pure magnesium ingots, magnesium powders, granules and alloys. The current annual production capacity within our Magnesium segment is approximately 80,000 metric tons of pure magnesium ingots and 10,000 metric tons of magnesium powder. Our goal is to consolidate the fragmented industry and emerge as a global leader in the production and distribution of pure magnesium and magnesium related products.

We have consolidated our magnesium operations under our International Magnesium Group ("IMG") subsidiary. We intend to promote our IMG brand as the premier global source for quality and reliability for magnesium related products. We also intend to expand our domestic and international sales capabilities under the IMG brand to create a cohesive and unified worldwide marketing effort for our production and distribution operations.

For more information on IMG, please visit our magnesium website: http://www.magnesiumgroup.com