2009 SAIC Annual Report:
On May 14, 2010, the Company filed the 2009 annual reports of its two Chinese operating subsidiaries (Lihua Electron and Lihua Copper) with the State Administration for Industry & Commerce (SAIC) in the People’s Republic of China. The SAIC is the Chinese government agency responsible for issuing and renewing companies’ business licenses. The SAIC reports were prepared in accordance with Chinese accounting rules and policies, and reflect financial information relating to Lihua Electron and Lihua Copper on an unconsolidated basis. By giving effect to reconciliation adjustments, the results contained in these reports are consistent with results reported in the Company’s audited financial statements as filed with the U.S. Securities and Exchange Commission. The original filing documents are available on Company’s website: at www.lihuaintl.com.

Each year, the Company electronically files its two wholly owned subsidiaries’ annual SAIC reports to a secured SAIC database, which is shared by various other tax authorities including State Administration of Taxation (“SAT”), for annual review and inspection.

Each of the Company’s wholly owned subsidiaries, Lihua Electron and Lihua Copper, makes quarterly estimated SAT tax payments throughout the year, and finalizes / trues up any additional tax payments (if needed) once SAT performs annual tax review and inspection based on PRC audited financials of each subsidiary, which are a part of the annual SAIC reports.

2009 SAIC Reconciliation
Lihua Copper SAIC Report
Lihua Electron SAIC Report

2008 SAIC Reconciliation
Lihua Electron SAIC Report