The Sri Lanka government has placed a tender for the supply of 15,000 heifers over approximately 3 years, with an immediate need for 1,500 head along with related animal husbandry management services.  Together with a number of other interested parties, the Company formed a team 'Ceylon Dairy' that has submitted a tender to supply these cattle and related services. CCL's main responsibility with be for the supply of the cattle, with other team members responsible for providing the related management services. It is anticipated that the Sri Lanka government will make a decision by October 2007.

Management has also had extensive discussions with other major Chinese cattle buyers and dairy companies, including the Newhope Group, Mengniu, Yili and Sanyuan. Further discussions have also been had with numerous government animal husbandry bureaus. Whilst no contracts have yet been signed, the company is in the process of making submissions for tenders for cattle supply, that Management are aware of through their numerous contacts made to date.