NT Holding

SUBSIDIARIES

Jinhai

Jinhai has been in coal refinery, coking coal production, power generation and the production of steel for over 10 years. Located at Shanxi Province in China, a region known as being rich in reserves of coal, Jinhai is surrounded by abundant source of raw material to support its production of coking coal. Jinhai currently employs approximately 500 employees and its production facilities occupy a landmass of approximately 2 million square feet. The current production capacity of Jinhai reaches an annual output of approximately 180,000 tons of coking coal and 200,000 tones of steel.

In the coming year, Jinhai will primarily focus on expanding its production capacity in coking coal and steel through expanding its existing facilities and streamlining its production processes. Also, Jinhai will enter into the chemical industry through the process of utilizing residues during the coking coal production process. The financial results of Jinhai will be incorporated into NTHH in the second quarter of 2006.

PT Borneo

PT Borneo is a corporation in the Republic of Indonesia carrying out coal mining and related export business. PT Borneo owns a number of rights of concession in certain coal mines located in East Kalimantan, covering a total area of approximately 19,191 hectares with saleable reserve of approximately 22 million tons. PT Borneo's short-term target is to build up three coal mines with a yearly output of 1 million tons each (i.e. a total output of 3 million tons). PT Borneo has also considered building a rinsing plant for its own use and at the same time produce extra revenue from serving other mines.

The company's competitive advantages include

Existing infrastructure

There are existing hauling road servicing all but one of the concessions and existing jetty and stockpile area on the Mahakam River.

Necessary Licenses

The company possesses all the necessary licenses. All current necessary licenses are or in the process of being placed in the name of the owner from whom the company have purchased the production right. It is not allowed for a PMA company to directly own this type of concession therefore the licenses must be in the name of a local company.

Logistics

The mining area is only one hour by road from major cities and the direct access on to the Mahakam river to the company's own jetty to the self-owned road gives a substantial saving in FOB Barge costs.

Management

The company's management possess over 30 years of experience in coal mining business. They are valuable keys to the company's success.