chensihong@cableplus.com.cn
chensihong@chensihong.org
chensihong
Sent: Monday, December 27, 2004 4:01 PM

Indian Iron ore
TYPICAL & GUARANTEED SPECIFICATIONS:

SPECIFICATIONS:

CHEMICAL: (on dry basis)
GUARANTEED Fe: 63.5% MIN (rejection Fe<62.0%)
SiO2: 4.0% MAX
Al2O3: 4.0% MAX
AS: 0.03% MAX
P: 0.06% MAX
MOISTURE 8.00% MAX

PHYSICAL (on wet basis)
0-10MM ABOVE 10 MM 95%
BELOW 10MM 5% MAX
MIN BELOW 0.15 MM 30% MAX
MOISTURE CONTENT: FREE MOISTURE LOSS AT 105 DEGREES CENTIGRADE SHALL NOT EXCEED 8%.

Brazilian Iron ore
Offer No. 1

We have high quality Brazilian Iron Ore available. The minimum quantity is
150,000MT per Month and requires a 1-year minimum contract. The supplier
can supply up to 400 Million Tonnes per year having merged with nine more
mines.

SPECIFICATION:

Fe 65.50% Rejection Below 63.00%
Al2o3 2.00% Max
Sio2 3.00% Max Rejection over 5.00%
Sulphur 0.003% Max
Phosphorous 0.06% Max
Mn 0.10% Max
Origin: Brazil
Shipping: Minimum 150,000MT Vessels.
Packing: In Bulk

Price: Pricing Per Month x 12 Price per MT
150,000-299,000MT USD 76MT
300,000-499,000MT USD 74MT
500,000-999,999MT USD 73 MT
1 Million -1.9 Million MT USD 72 MT
2 Million - 2.9 Million MT USD 72 MT
3 Million and above MT USD 72MT

Prices are CNF ASWP.

Offer No. 2

BRAZILIAN IRON ORE 64.5% FINES
Minimum 60,000 mt/month
Maximum (no maximum quantities)
CIF Price:
60,000 500,000 mt/month - $73.00
over 500,000 mt/month - $70.00
Please consider Prices as Soft Quotes.

SPECIFICATIONS:

Fe 64.5%
SiO'2 3.5%
Al2O3 3.5%
P 0.07%
S 0.07%
MOISTURE 10.0%
PHYSICAL COMPOSITION (on dry basis):
SIZE:
Below 10 MM (100Mesh) 90%
Rejection below: 63.00%

With the 64.5% Iron Ore supplier needs the exact LOI as shown below.

--------------------------------------------------------------------------------

SHOULD BE BUYER¡¯S LETTERHEAD

Date Issued: Date must be less than 3 days old

LETTER OF INTENT

TO:
THROUGH:

FROM: (Buyer¡¯s Name goes here)

We, (Buyer¡¯s Name goes here), 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.

COMMODITY: Iron Ore
ORIGIN: Brazil
SPECIFICATION: 64.5 % Fe content

COMPOSITION:

Fe 64.5%
SiO2 3.5% MAX
AL2O3 3.5% MAX
Phos 0.07 & MAX
Sulphur 0.07% MAX
Moisture 10.0% MAX (Loss at 105 degree)
Physical Size: < 10 mm 90% MIN

QUANTITY: (insert monthly requirement here) MT per Month
CONTRACT LENGTH: XX Months
LOADING PORT: As per supplier, 30-45 days after receipt and acceptance of LC by Seller
DESTINATION PORT: (insert port of delivery here)
TARGET PRICE: (Should be Invoice Price to Buyer including commissions)/MT
SHIPPING TERMS: CIF
DELIVERY TIME: (insert approximate month of 1st shipment here)
INSPECTION: Quality, Quantity, Weight by SGS certified agencies at seller¡¯s cost at loading port.
PAYMENT: (Indicate Payment option from list below)
PBG: 2% to be submitted by seller
LOI VALIDITY: 14 days from the date of issuance

PAYMENT OPTIONS AVAILABLE

1. IRREVOCABLE, REVOLVING, TRANSFERABLE, CONFIRMED LETTER OF CREDIT.

On a 12-month contract the Maturity Date would be 2 years and 35 days. First drawdown is 1 year and 35 days with each subsequent drawdown in 30-day increments, freeing up
cash for the Buyer in that first year. RLC may be used for a duration of 1, 2 or 3 year durations.

2. BANK GUARANTEE or STAND-BY LETTER OF CREDIT.

Either used for a 1-year and 45 days duration. BG or SBLC will be cashed in full one year and 1 day after it is opened. On large quantities with this payment option it is possible that a further discount may be negotiated

PROCESS

1. Buyers open non-operative LC
2. Seller issues POP as follows:
a) Previous Shipping Documents for multiple shipments (sanitized)
b) Previous SGS reports for the above shipping documents (sanitized)
c) Previous Bill of Lading (sanitized)
3. Seller issues 2% Performance Bond
4. Buyer opens Mode of Payment to Seller
5. Shipments commence

The following table is for Buyer¡¯s information and banking details:

(ALL BANKING DETAILS MUST BE PROVIDED)
Company Name:
Company Address:
Contact Person:
Telephone:
Fax:
Email:
Company Bank: (Should be Top 25 World Bank)
Bank Address:
Bank Complete Telephone Number:
Bank Complete Fax Number:
Bank SWIFT/ABA/Routing Number:
Bank Account Number:
Bank Account Holder:

(These clauses must be included on LOI from Buyer)

Sincerely Yours,
www.chensihong.org