The Maoling Gold Project was earmarked by the Chinese government for development and foreign investment as early as 1994, when the State Council approved a report identifying it as one of 10 deposits to be made available for international participation. Maoling was again presented as one of 16 alternative exploration districts to be opened to foreign investors by the Ministry of Land and Resources at the 1999 "China Mining Conference" in Dalian city. Encouraged by these invitations to participate in the project together with the national policy of opening up mineral resource development to foreign-funded companies, Mundoro conducted a project assessment and began partnership discussions with a company controlled on behalf of the provincial government of Liaoning by the Geological and Exploration Bureau, Liaoning Aidi Resources Company Ltd. ("Aidi"). The formal co-operative joint venture agreement, where Mundoro has rights to a 79% interest in the JV and Aidi has a 21% interest, was finalized in 2001, resulting in the formation of Tianli to manage the project. The exploration license for the project, covering an area of approximately 20 square kilometres, was transferred to Tianli in 2002.

Tianli's business license was granted in August 2001 and the exploration license was transferred to Tianli on April 2002. Tianli's business license was not renewed on August 31, 2005. Tianli's exploration license for Maoling expired on November 5, 2005, and was not capable of being renewed because Tianli did not have a renewed business license.

Mundoro has conveyed the economic and environmental merits of Maoling to various levels of the provincial and national levels of government in China and has written to and sought the support of various levels of the provincial government requesting a resolution. As a result of Mundoro's efforts with the City of Yingkou, Maoling's development was discussed at their People's Congress meeting in 2007. At the national level, Mundoro has met with the Ministry of Land and Resources ("MOLAR") and Ministry of Finance and Commerce ("MOFCOM") in Beijing to discuss the issue. From the Canadian perspective, Mundoro has communicated with the Canadian Embassy in Beijing and the Canadian government in Ottawa to seek their assistance in communicating with Chinese government agencies regarding Tianli's business license and exploration license. Both the Canadian Embassy and the Canadian government have raised the issue with their Chinese counterparts in official government meetings.

Mundoro Mining intends to continue with the government relations activity in China with the objective to renew the business license. Mundoro Mining will continue to build awareness for the Maoling Gold Project and the environmentally sound manner in which it can be developed.

The activities of foreign-invested mining companies ("FIMCs") in China are subject to extensive laws and regulations at the national, provincial and local level, including the Mineral Resources Law of China and regulations thereunder; laws and regulations governing foreign investment enterprises ("FIEs") in China; and various rules and policies of the Ministry of Land and Resources. Operations of FIMCs may be affected by such government regulations and restrictions on production as import and export controls, taxes, maintenance of claims, environmental legislation, land use, water use and safety regulations. The effect of these factors cannot be accurately predicted.