IRON ORE

1. – Commodity:
   Iron Ore base 63% (rejection below 62 %)
   Country of Origin: Mexico
   Packing: Bulk 3 Inches to fines.
   Port of Loading: Lázaro Cardenas, Mexico

2. • Quantity:
     140,000 MT per Month for 12 Months Contract CFR PORT RIZHAO, CHINA.
     Shipment: Within 30 days after the issuing date of DLC.
3. • Specifications:
     A. - Chemical composition

   Guaranteed value (on dry basis) Rejection value (on dry basis)
   Fe 63% base < 62%
   Al203 2.00% max. > 3.00%
   Sl02 4.00% max. > 5.00%
   S 0.08% max. > 0.10%
   P 0.09% max. > 0.10%
   K2O 0.08% max.
   CaO 2.50% max.
   MgO 5.00% max.
   Na2O 0.02% max. >.35%

   B. - Moisture Content (Free moisture loss at 105 degrees centigrade) Free Moisture: 8% Max at
   105°C

4. • Price:

$104.00 Usd CFR per MT

The base price shall be increased Usd $1.00 / Mt for 1% Fe content above 63%, below 63% this price shall be decreased Usd $1.00 / Mt. for 1% Fe content up to 62%.

5. • Payment terms:

100% Letter of Credit payable on demand of signed Commercial Invoice, SGS, Packing List and Ocean Bill of Laden.

• Immediate payment liberation after the loading on the ship of the last ton.
• Ship will be released after Letter of credit payment.
• Expenses incurred by delay of Bulk will be covered by the buyer.
• Expenses incurred in case the letter of credit is not released for payment will be covered by the
  Buyer.

The DLC shall be issued by buyer’s bank within five (5) banking days upon the reception of the non-operative performance bond 2% from the CFR price from seller’s bank.

6. • Performance Bond:

Within five (5) banking days upon the reception of the legalized contract (by consuls / embassies bureau), stamped and signed from buyer, and the pre-advise of DLC from buyer’s bank, Seller shall issue a NON-OPERATIVE PERFORMANCE BOND which is equal to 2% of the Cargo value for each shipment to the buyer’s bank; and the seller shall send also a copy via fax / or via email to BUYER, that will be automatically operative when the buyer issue the DLC.

7. • Quality and Weight Inspection:

In order to confirm the product Quality, the Seller run a pre-analysis at the mine by SGS before deliver the product to the port terminal. At loading port 3rd party’s inspection shall be done by SGS. The analysis of the elements must be tested to get accurate results. Inspection fees shall be for Seller’s account. The Buyer has the right to be present at loading port to do further inspection before the loading of each shipment, these operations are at Buyer’s cost. Seller shall provide all necessary assistance and cooperation.

8. • Procedures:
     1) The Seller sends full corporate offer to the buyer
     2) The Seller sends draft sale and purchase agreement (SPA) open for amendments
     3) The Buyer returns SPA to Seller
     4) Seller and Buyer exchange signed and sealed hard copy of contract.
     5) Within 5 banking days from the date of receipt of signed & sealed hard copy the Seller: Should issue the 2%