About Zhen Ding Resources

Zhen Ding Resources Inc., through its joint venture entity, Zhen Ding Mining Co. Ltd. (Zhen Ding JV or JXZD), engages in the ore processing and production in the People's Republic of China (PRC). The company is engaged in seeking business partnership opportunities with companies that are in the field of exploration and extraction of precious and/or base metals, primarily in China, which are in need of funding and improved management. The company would provide the necessary management expertise and assist in financing efforts of these mining operations. In exchange, the company would acquire metal ores produced by these mines and process the ores in the company's ore milling plant and sell the ore concentrates to metal refineries. The company's only operating company is Zhen Ding JV which, has engaged in the processing of metal ore and the selling of ore concentrates of gold, silver, lead, zinc and copper at purity levels ranging from 65% to 80%. Zhen Ding JV purchased metal ore in rock form from its joint venture partner, Xinzhou Gold, which holds rights to explore and mine ore from a property located in the southwestern part of Anhui province in China. Presently, the company conducts its operations exclusively through Zhen Ding JV, the company's joint venture company. However, the company continues to look for other attractive potential acquisition targets in the mining industry. The company's joint venture, Zhen Ding JV, is equipped to process ore mined by the company's joint venture partner Xinzhou Gold when in operation. Zhen Ding JV purchases the ore in rock form from Xinzhou Gold and processes the ore into the company's final product, which is a gold, silver, lead, zinc and copper ore concentrate. The company estimates that its processed product is 65% to 80% pure. The product is then sold to refineries, which further purify and separate the concentrate. Zhen Ding JV also arranges all exploration, mining process and operations, and financial and administrative support for Xinzhou Gold's mine, known as the Wuxi Gold Mine. The company purchases all of its raw material from Xinzhou Gold for the company's ore processing operation and rely solely on Xinzhou Gold for the company's supply of ores. The veins most recently excavated by Xinzhou Gold in the permitted areas of the company's mines are very low grade and, as such, the production is minimal. The higher yielding and therefore more profitable veins run outside Xinzhou Gold's permitted mining area boundaries under its license. Xinzhou Gold applied for an extension of the permitted mining area, however, the application was rejected by the government in December 2016 due to Xinzhou Gold's insufficient working capital. Xinzhou Gold intends to reapply for an extension of the permitted mining area when it is able to demonstrate sufficient working capital to drill the extended area. However, if sufficient working capital is unavailable, or should the application be denied on other grounds, the company would not be able to secure another source with higher grade ores for the company's processing plant, which would severely limit the company's ability to execute its plan of operation and the company's potential profitability. Environmental Regulations The company is subject to a variety of governmental regulations related to environmental protection. The major PRC environmental regulations applicable to the company include the Environmental Protection Law and the Environmental Impact Appraisal Law. The principal regulation governing foreign ownership of the company's business in the PRC is the Foreign Investment Industrial Guidance Catalogue, effective as of April 10, 2015 (the 'Catalogue'). History Zhen Ding Resources Inc. was founded in 1996. The company was incorporated in the state of Delaware in 1996.