21. SUBSEQUENT EVENTS
On January 2, 2012, the Company and PCGM agreed to complete the acquisition
of Cunliji Gold Mine and waived its annual rental charge for 2011 fiscal year.
In accordance with ASC Topic 855, Subsequent Events, which establishes
general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements
are issued, the Company has evaluated all events or transactions that occurred after December 31, 2011 up through the date the
Company issued the audited consolidated financial statements. During the period, the Company did not have any material recognizable