Daphne Board of Directors Office           40th Issue           November 27, 2009

        Pursuant to the spirit and requirements of the documents such as Circular on Energy Audition 2009 for Key Energy Consuming Enterprises issued by the Wenshan Prefectural Government Energy Conservation Management Office, experts were organized to carry out review of energy audit reports for the local enterprises for 2009. Through comprehensive review, 10 enterprises in the prefecture passed the review. Daphne's energy audit report was rated "good". Enterprises rated "satisfactory": Wenshan Zhengtai Manganese Industry Co., Ltd., Yunnan Puyang Coal Chemical Co., Ltd., Yanshan Dianchang Ferrous Alloy Co., Ltd., Malipo Xingda Metallurgical Chemical Co., Ltd., Malipo Joint Ferrous Alloy Steel Mill, Yunnan Hualian Maguan Power Plant Co., Ltd. Sales Co., Maguan Jinxin Ferrous Alloy Co., Ltd., Yunnan Muli Antimony Industry Co., Ltd. and Funing Huajia Pulverized Manganese Plant. 
        The good rating is credited to Daphne's consistent effort in energy saving and consumption reduction. The water, coal and power consumptions are accounted according to the production costs, and linked with the product's unit production costs. Energy saving and consumption reduction is covered by each workshop's wage assessment mechanism. With such effort, energy consumption is decreasing annually, more or less, laying a good basis for Daphne's products to grab the market.