HMS 1 & 2 (80: 20)

Loadstar Metals

Asia Lang

The following is our buying procedure, it is designed to eliminate broker's
who waste our time shopping around for buyer's and for buyer's who do not
have the funds to purchase our goods.

Buyer's issues Letter Of Intent (LOI or ICPO with permission for soft probe)

Seller issues Full Corporate Offer (FCO) or Draft Contract in name of the
Buyer and the Buyer returns sealed and signed to the Seller. Seller will
send 70 updated pictures of yard and goods. You can determine the date the
pictures were taken under "preferences" on your tool bar.  The Seller will
also send satellite pictures off Google earth to show that the goods exist
in the yard.

After buyer signs and seal and returns, Buyer's bank confirms availability
of the Financial Instruments (DLC) to the Seller's bank and their readiness
to issue within 14 days of signing the contract. The format/ text of such
Financial Instrument to be supplied by the Buyer's bank and approved by the
Seller's bank Seller forwards four (4) hard copies of original final
contract signed and stamped to Buyer by DHL or similar courier.

The buyer signs and returns 2 hard copies of original final contract signed
and stamped.

Yard Visit: Seller will send invitation for buyer for a yard visit once the
buyer:

1. Issues irrevocable, non-operative, Letter of Credit, or

2. Issues MT799 from buyer's bank. An MT799 message is essentially a "free
format" text message sent between banks and is treated much like a secure
form of email. Properly constructed, a SWIFT MT799 can be used to
legitimately provide documentary evidence that a trading partner has the
funds available, either on deposit or via some form of credit facility, to
engage in a transaction, or

3. Issues $5,000 cash deposit to Seller. After the yard visit, the Seller
will apply the deposit to the purchase amount of the Buyer.


Buyer opens the Non-Operative Financial Instruments (DLC) within 14 days of
signing the contract, and pending the receipt of the Performance Bond (PB),
Seller's bank confirms Proof of Product (POP) to Buyer's bank.

Seller agrees to issue a 2% Performance Bond (PB), and Seller's bank will
confirm Proof of Product(POP) to Buyer's bank, to activate the L/C. After
receipt of the Buyer's Non- Operative Financial Instruments, the Seller will
commence loading.

Port Inspection: Seller sends invitation to buyer for port inspection. SGS,
CCIC, or other third party inspection company,  D/L all Documents will issue
at the port.

The First shipment will commence no later than 45 (Forty Five) days from
date issued of the operative Letter of Credit.

Payment of the Letter of Credit shall be effected within 3 (Three) banking
days after receipt by the Seller's Advising Bank of all documents required
for payment.

Yours truly,

We have 30,000 M. T. of Canadian Scrap. $280 USD M. T. CNF or $190 FOB/ex yard