1. Xiarui Sand Industry Co., Ltd was registered on October 25, 2013. The company was created by Ningxia Xiarui Biotechnology Co., Ltd. and the US Blue Sky Capital. Now the company rented 150 mu land in Gaotaixian Nanhua Industrial Park South in order to building industrial workshop and office administration building, licorice beverage production workshop and the other development workshop of deep processing licorice production and so on. At the same time, the company also leases 50,000 mu land in Gaotaixian Xinbaxiang Xusanwan for 50 years of planting high-quality licorice cultivation. Total investment of Industrial construction and agricultural construction are 595 million Yuan. Among them, the investment of industrial production construction project was 1.18038 billion Yuan. Agricultural cultivation: 1) during 2013—2014 year, the planting base construction of the company is not less than 10,000 mu; 2) In 2015 inventory area will be enlarged to 20,000 acres planted; 3) in 2016, licorice planting will be 15,000 acres. The total planting are will be 45,000 acres. Natural flood control reservoir will be 5,000 acres in order to irrigation. After 2016, excavation licorice will be no less than 10,000 acres per year. Also we will guarantee that the completion of the annual excavation area will be 20,000 acres, so that the production of licorice is 15,000 tons and earning net profit of 20 million Yuan annually. Investment Budget: 4.75062 billion Yuan. The total investment is 595 million Yuan.
2. Xiarui licorice industry and sand industry development projects will carry out in three phases: the first phase, in the beginning of 2013, agricultural licorice will be planted in larger scale. The licorice planting base in Gansu province , Zhangye City Xinba xiang Xusanwan is 50,000 mu, where is divided into three stages of development, while carrying out licorice processing, slicing business and trade selling:
   • The first phase is developing 30,000 mu planted management, while the acquisition of initial processing more than 3,000 tons of licorice;
   • The second phase is developing 20,000 mu planted management, while the acquisition of initial processing more than 3,000 tons of licorice;
   • The third phase, at beginning processing self-planting licorice, and the first stage is processing 6000 tons, the second phase is processing 15,000 tons.
   • The second phase, in the beginning of 2015, licorice industry starts to doing vertical integration.
   • After two years of licorice growth, we will purchase advanced equipment, and doing more development of research, so we can carry out the comprehensive deeper processing of licorice, capsule manufacturing, beverage manufacturing and other peripheral items:
   • Licorice deep processing: the first stage is achieving the goal of extracting 2500 tons of licorice raw materials, the second stage is 5000 tons, and the third phase is 10,000 tons;
   • Capsule production: the first stage will produce 500 million capsules annually, the second phase is 600 million;
   • Beverage production: the first stage will produce 300 million cans of licorice drink annually, the second phase is 600 million cans.
   • The third period, at the beginning of 2017, sand industry starts to vertical integration.
   • Licorice series industries rely on the comprehensive development of sand industry, from vertical and horizontal expansion of green agriculture, industry and the tertiary industry, to achieve a win-win ecology and economy. Planning industry development direction are:
   • Value-added agricultural processing industry: such as processing, planting and peripheral industries of Wolf poisonous weeds, Cistanche and so on.
   • Industrial: New energy (solar, wind), desert-made water project
   • Tertiary Industry: urban planning, ecological and cultural tourism, etc.
3. The main purpose of Phase III is developing the “Sand Industry”. Sand industry refers to the economic activities to utilize the unique advantage of sand land and the arid-semi-arid area to develop business, attract social investments and realize self-sustenance. Developing the new sand industry in the barren land of western China requires applying achievements of modern technology in all areas -- physics, chemistry, biology etc. through the plant, solar energy transformation, water saving and so on, in order to develop the knowledge-intensive agriculture. This new concept of sand industry was first raised by the famous scientist Mr. Qian， Xuesen in 1984. It has an extremely promising future. Last but not the least, Xiarui will work closely with partners to develop desert resources such as solar energy and wind energy. The final target for the sand industry is to take advantage of the latest technology to make water from desert, turn the desert into forest and achieve the once prosperity of River-west Corridor in Ancient times of Gansu Province.
4. Our Mission: To develop sand industry by the power of licorice industry and to control desertification process of China, US and the whole world by planting licorice and other rare herbal medicine.
   • Social Benefit: Water and soil protection, Desertification prevention and control.
   • Economic Effects: Turn sand into gold; discover resources and make fortune out of the desert.
5. The source of the investment comes in the following ways: Shareholder investment; Private Equity; IPO; private lending; Bank loans; Public financing.
6. Until 11/30/2013, Xiarui Sand Industry Gaotai Co. Ltd has finished the first round of Original shareholders financing. Now, the office building covering 150 Mu land and workshop for licorice drink are under construction and will be completed by 03/31/2014.
7. After August 1, 2014, the workshop of the company's 3020 square meters of Qilian drink and other workshops and office buildings are basically completed;
8. Also after August 1, 2014, "Qilianganlu" brand, licorice beverage production equipment are scheduled to be delivered, each line to produce drinks 450 cans per minute, a total of 900 cans two lines. An annual output of 300 million cans, cans Yuan each, a total of 1.8 billion Yuan output value;
9. In order to finance and future products overseas sales, on December 16, 2013, the company signed “exclusive financial adviser cooperation agreement" with US Blue SKy Capital. Within 36 months of fighting, to become domestic or overseas listed company.
10. Profit Growth Opportunities for the Licorice Industry
    1. The profit of licorice drink of 2014
    2. The profit of licorice slicing and trading of 2014
    3. The profit of intensive licorice processing and extraction of 2015
    4. The profit of intensive licorice processing and extraction downstream products of 2016
    5. The profit of agricultural plantation of 2016
    6. The profit of licorice extensive process waste reuse of 2016 (MDF plant humid acid polymer or natural licorice special fertilizer)
11. Xiarui Sand Industry has already started to buy licorice and foreign trade. The company predicts to buy and process 10,000 Tons licorice in 2014. The output is 120,000,000 Chinese Yuan and the profit is 30,000,000 Chinese Yuan.
12. After Xiarui Sand industry's licorice planting and processing industry project starts, the company will no longer sale raw licorice, instead of operating technology and high added value products.
13. The company main product categories:
    1. Licorice rough fishing product: a. the strip of licorice or sliced: premium, Class A, B, C, D, teasel; b. Wafer: premium, class A, B, C, D; c. oblique slices: Premium, class A, Class B, C, D.
    2. Xiarui brand licorice beverage products;
    3. Licorice deep processing products: a. licorice acid; b. licorice polysaccharide. c. licorice flavonoids three extract.
    4. Licorice derivative products and deep-processing products: a. the derivative of glycyrrhizin as: Single ammonium, sodium, the salt, glycyrrhetinic acid; b. licorice polysaccharide derivatives as: licorice drinks, natural food additives; c. licorice flavonoids derivatives products: mildew denaturant (for global wheat aphids and gray mold prevention), natural food preservatives, fruit and vegetable.

Xiarui sand company in China has established a complete sales system, while US Blue Sky Capital Group established stable marketing system in the development of European and American countries, making licorice deep-processing products directly into the international market. Two-pronged approach to build sand industry billions of industries and spend millions of net profit. According to 15% of the investment amount of the annual dividend, Xiarui will repay the investors.

Using ways of 20 million dollars

The current initial investment requirement is $20,000,000.

The 20M is to be used to complete construction on the office and processing facilities in the industrial park and to start the licorice planting on our licorice farm.

We anticipate an expenditure of approximately 5 million to perform some leveling of the land, tree planting to create a natural wind breaker , well drilling and some irrigation as well as initial planting of a licorice crop.

The remaining investment requirement will be spent on completing the construction at the industrial park and for installation of the drink processing equipment and licorice processing equipment as well as purchase of the licorice crop to produce 300,000,000 drinks

Distributors will purchase this production for an initial deposit of 30% of the cost price of 4 Yuan.

30% of 4 Yuan is 1.33 Yuan per can.

The cost of production is 1.87 Yuan. After completion of sales revenue generated is 4.00 Yuan minus 1.33 = 2.66 of which 0.54 must be deducted = 2.12 times 300,000,000 = 636,000,000 Yuan or 106 million dollars in net profit.

We are offering investors a return of 50% on their investment following two years of operation.

Construction completion and first day of operation is anticipated to be approximately 6 months. Therefore the investor receives 50% interest on their 2.5 year investment.

The investor receives 5 million in interest following the first year of operation and 25 million upon completion of the second year of operations for a total of 30 Million USD (a 50% return).

Through the above analysis, in this round the company targeted 20 million dollars (or 120 million Yuan) of the capital raising, and completed the workshop equipment ordered, and began production. Complete further five acres of agricultural cultivation of licorice and power construction and water conservancy construction bases. At the same time, the company starts a new energy to meet the company's demand for electricity while the supply surplus electricity to neighboring units of electricity demand, allowing the company to produce the output value of nearly 10 billion. The company expects to use about two year to help go public on the NASDAQ or New York Stock Exchange or , referring to US-listed Chinese tour the first day opening price, the company's stock price on the first day opening price will not less than 28 dollars is expected to surge. Thus, buy now and hold one dollar (or six Yuan) an original stock of the Company, will be rewarded.