STEAM COAL

lim joon hyeong       - ( conversation in Indonesian and Korean )

antonius bambang. ( conversation in Indonesian and English )

Thanks and regards.

Please do not hesitate to reach us if you have any questions or doubts.

Please find detail data and information in the attachment, include our mining site photograph showing our present ready stock of  54.000 metric tons plus daily production amounting to 2.000 tons.

The coal transportation from mine site is firstly by heavy duty truck to jetty at Sei puting river (21 km), then continued by barge. Barging operations are by tug and flat top barge ( jetty capacity is 8.000 tons up to 10.000 tons, combinations transporting coal either directly to consumers receiver ports or coastal offshore anchorage locations for trans- shipment to coal terminal facilities or to bulk carriers at an anchorage 15 miles of barito river entrance channel which can load vessel up to 200.000 dwt  at up to 25.000 metric tons per day.

?             Prices and terms  are subject to change without prior notice.

?             PAYMENT                                                      :  IRREVOCABLE LC.

?             FOB BARGE Sei Puting Jetty Location  (B)       :  USD.37/metric ton

?             FOB VESSEL LOADING LOCATION (C)            :  USD.42/metric ton

Coal Price :

9.       

8.      H G I  (ADB)                                 :           45 52

7.      Gross Calorific Value (ADB)     :           5.300 5.500 K.cal/Kg.

6.      Fixed Carbon      (ADB)              :           by different

5.      Volatile Matter (ADB)                 :           38 42 %

4.      Sulphure Content (ADB)             :           0.8 -  1 %

3.      Ash Content        (ADB)              :             4 -  8 %

2.      Inherent Moisture (ADB)             :           10 18%

1.      Total Moisture (ARB)                  :           30 32%

                                      :

Coal Quality    

f.        Estimated Coal Deposit       :     3.000.000 metric tons

e.      KP.TRANSPORT & SALES   :     NO.90, dated,29-06-2004

d.      KP.EXPLOITATION         :      NO. 90, dated 29-06-2004

c.      KP.EXPLORATION          :     N0.89, dated June 24^th,2004

b.      Legality                          :     Complete

a.      Mine Site Location          :     Desa 11, Km, 92 Jl. Jend. Ahmad Yani, Tapin Regency

Our coal mine description is as follows :

The location can be reached through public road. The road condition is quite good. in the form of hot mix road, even up tomartapura city  it  is wide and having 2 lanes. In the normal condition, the coal mine location can   be  reached within two hours  from  banjarmasin city central  or  just one hour and thirty minutes  from syamsuddin  noor  airport of  Banjar masin.

Our coal mine location is situated at km 92, from  Banjarmasin toward Rantau, the capital city of Tapin Regency. Southern Kalimantan province, Indonesia.

We. as the sole holder of an exclusive  and irrevocable power of attorney to produce and to sell coal by ourselves  from the KP ( Kuasa penambangan / Mining authority permit ) holder, for the protection of the buyer will be  fully  liable  for the validity  of the concession, including therein the term of concession validity, and . We CONFIRM and WARRANT that our coal product is produced from good  CONNCESSION AREA, completed  with official and legal documents including certificate of coal origin. In essence we  must transact our coal in the right way. in order for the   transaction of natural resources from Indonesia  with our  customers goes smoothly.

This is with great pleasure that I write this e-mail regarding our coal product which in short brief,  as the following  :

Dear Customers,

GCV 5.300-5500 K.CAL/KG, PRODUCED FROM OUR OWN CONCESSION, COMPLETE LEGALITY, GOOD LOCATION AND INFRASTRUCTURES ARE CONDUCIVE.