Steam Coal

NOTE: Prices are subject to change, unless accepted and confirmed in writing within 72 hours of date of document.

1) BANK-TO-BANK Confirmation of FUNDS, and 2) an Irrevocable, Transferable, Confirmed Divisible Fully Founded Documentary Letter of Credit, by an Acceptable Prime Bank rated "AAA", for an amount equal to six (6) months deliveries, payable ON DELIVERY at delivery port according to contract terms and conditions agreed by SELLER and BUYER and subject to approval of quality based on SGS certified agency or equivalent certification at port of loading and against shipping documents.   Per STANDARD COAL TRADING AGREEMENT (SCoTA) 6(a.) dated 3 August, 2007, Section 13, Page 15.

PAYMENT TERMS: Buyer to provide within 72 hours of execution of LETTER OF INTENT:

                              panamax size barges or cape size cargo;

                              500,000 MT +/- 10% (for shipping purposes only)

Quantity:                  40,000 MT PER MONTH +/- 10% (for shipping purposes only)

FSI:                        3.5 max

HGI:                        45 min

Sulphur Content:       0.80% (as received basis) Max 8.5%

Ash Content:            5.0% (as received basis) Max 10.0%

Volatile Matter:        33.0% (as received basis) Max 40.0%

Total Moisture:        11.0% (as received basis) Max 13.0%

Calorific Value:        6100 min - 6600 kcal/kg NAR max

BTu/LB:                  6,100 min - 12,400 max

Bituminous Steam Coal type A:

STEAM COAL-USA / South America