Dear sir,

RE : At US $ 66 / MT CNF China : 64.5% Fe MEXICO / 63.5 % BRAZIL Iron Ore

OFFER VALIDITY : 4 JUNE 2004 – TOTAL QTY AVAILABLE : 3 M MT / month. CONTRACT AVAILABLE FOR 12/24/36 months with yearly price revision.

I am glad to introduce my self. I am Director of RASIKA SOURCING AGENCY, Mumbai, India. I have 24 years PURCHASING experience in Steel Plant and till recently worked as a : PURCHASING MANAGER.

I am pleased to inform you that my seller is offering MEXICO / BRAZIL Iron Ore at the most competitive prices as under: I must inform you that this is the BEST PRICE as on now in the total Iron market, which shall appeal to a GENUINE BUYER.

OFFER HIGHLIGHTS : ORIGIN : MEXICO / BRAZIL .TOTAL QTY AVAILABLE: 3 M MT / month. CONTRACT AVAILABLE FOR 12/24/36 months with yearly price revision

IMPORTANT QUE / ANS FOR BUYER :

• CAN SELLER GIVE POP? : Yes, seller can give POP. POP by seller against POF by buyer. POP is available after signing contract and even before opening LC.
• CAN BUYER VISIT MINE? : Yes, buyer can visit mine and see the mining operations himself with his own eyes. This can be possible after buyer / seller sign the contract. But, after buyer posts: Pre-advice LC.
• CAN PAYMENT TERMS BE : NON TRANSFERRABLE LC ? : Yes, the LC can be non transferable LC provided buyer bank is world prime bank in Beijing / Hong Kong and LC is confirmed by top 25 banks.

• PRICE : US $ 66 / MT CNF Main China Port. Price revision every 12 months. CONTRACT AVAILABLE FOR 12/24/36 months with yearly price revision

• FE = Minimum 64.50 % for MEXICO / Minimum 63.50 % for BRAZIL

• DELIVERY: as per buyer’s choice.

• PAYMENT TERMS :

Payment terms are revolving irrevocable, unconditional, unencumbered, and transferable Letter of Credit.

OR :

Payment terms are revolving irrevocable, unconditional, unencumbered, and NON TRANSFERRABLE Letter of Credit. This condition can be considered only when buyer bank is world prime bank in Bejing / Hong Kong,

• PB : Seller’s PB of 2% value shall activate buyer’s Non operative LC.

• POP, Mining certificate , Inspection report AVAILABLE.

• INSPECTION : Inspection by SGS at seller’s account.

PROCEDURE :

• BUYER SHALL GIVE SIGNED & SEALED LOI AND BCL TO ENTERTAIN ONLY SERIOUS AND GENUINE BUYERS.
• BUYER SHALL BE SENT THE DRAFT CONTRACT FOR UNDERSTANDING TERMS OF THE SALE..
• BUYER APPROVES THE DRAFT CONTRACT.
• THE FINAL CONTRACT IS SENT TO BUYER. FIRST BUYER SIGNS AND THEN SELLER SIGNS.
• POF BY SWIFT
• POP BY SWIFT
• BUYER TO POST NON-OPERATIVE LC [ NOLC ] IF BUYER WANTS TO VISIT MINE, IT IS ALLOWED AFTER BUYER POSTS : PRE-ADVICE LC AND SUBMITS BCL.
• SELLER TO POST OPERATIVE 2% PB TO ACTIVETE BUYER’S NOLC.
• SHIPMENT COMMENCES

Best regards,

Vilas Bhamre
Director,