LETTER OF INTENT

To:                                                                                                                     Date: August 23, 2008                                                          

We , _______________________hereby state and represent that it is our intention to purchase, and we hereby confirm that we are ready, willing and able to purchase  the following commodity as per the specification and in the quantity and for the price  as specified in the terms and conditions as stated below. This representation is made with full corporate authority and responsibility. We expect to FCO or contract from the seller:

Commodity     : Brazilian iron ore 

Origin                          : BRAZIL

Quantity          : minimum 150,000 MT X 12 - month

Duration          : 12 months

Price                : USD 143.00 CIF AWSP China

Delivery          : (name the port) China

Packing           : Bulk delivered

Payment          : 3 months paid by BG or SBLC to be used for last 3 shipments of 12-month contract) and first 9 months of shipments paid by Irrevocable-confirmed-revolving-transferable-divisible-fully funded-100% at sight DLC (FFRTDLC) issued by a top 50 European or USA bank of the world (banks listed here: http://www.bankersalmanac.com/addcon/infobank/wldrank.aspx )

Inspection        : SGS report fee on contract seller’s account SGS

P. Bond            : 2% against LC value

Specification: 

Iron Ore Fe 64.5% (Rejection below Fe 63.5%)

Fe        : 64.5%            Rejection below             : 63.5%

Al₂O₃    : 0.5%              Rejection above             : 2.00%

SiO₂     : 3.0%              Rejection above             : 4.00%

S          : 0.007%           Max                             : 0.03%

P          : 0.05%            Max                             : 0.04%

K₂O      : 0.008% 

CaO    : 0.02%

MgO     : 0.03% 

Na₂O    : 0.005%

TiO₂      : 0.08% 

Mn       : 0.15%

Physical characteristics:

0.15mm – 3mm             30% min

3mm - 5mm      60% max

5mm -10mm     10% max

Moisture:  

8.00% at 105 degrees centigrade

BUYER’S BANK COORDINATES will issue transferable L/C to the contract seller

The buyer permits the seller to precede soft probe on the creditability of the bank account.

For and on behalf of the Buyer:

X________________________

    Buyer’s authorized signature

    President or authority