OFFER : NICKEL ORE (Ni = 1.8%)

We are the selling agent of PT. Integra Mining Nusantara, the Indonesian Mining Company that has been export the galena since 10 years ago. Now, the company has been expanded to open new mining of nickel ore since last years. In the last July 2008, we will receive the legally mining concession license for exploitation and export the nickel ores.

THE INFORMATION ABOUT THE MINING AREA :
Exploitation Area : 396,8 ha
Mining Deposit : 15 million MT approx.
Supply Capacity : 100.000 - 150.000 WMT/month
Distance Stockpile to Jetty : + 150 m
Mother Vessel anchorage : + 5 miles from Jetty
Loading Rate : 5.000 WMT/day



We accordingly make the following offer :

Commodity : Laterite Nickel Ore

Delivery : laycan is to be mutually agreed for the trial shipment, and to follow one shipments by monthly shipments as per the mutually agreed laycan periods.

Specification:
At "Dry Basic" (DB), with the following specifications at JIS standard method and/or ASTM and/or other related international method used by surveyor in the loading port, unless otherwise stated :

Commercial Specifications: (to state in the Contract, Letter of Credit and for invoicing purpose)

Ni (Nickel) : 1.8% as base, otherwise bonus/penalty to apply

Fe (Ferrum) : 30% maximum, otherwise penalty to apply

P (Phosphorus) : 0.02% maximum, otherwise penalty to apply

Total Moisture : 30% maximum, otherwise penalty to apply

Price (updated on January 23, 2009)
US$ 19/MT FOB South Konawe District, Southeast Sulawesi Province - Indonesia, basis Nickel 1.8% and Moisture content 30%.

Demurrage / Dispatch:
As per Charter Party Subject to approval PT. Integra Mining Nusantara.

Weighing/Sampling/Analysis:
The testing should be conducted by qualified independent and recognized testing institute agreed by both Buyer and Seller, in this respect PT. Sucofindo. Loading port certification on Quality and Quantity will be binding for commercials invoicing and settlement.

Payment Term:
Irrevocable Letter of Credit at sight 100%, issued by a first class international bank acceptable to and in favor of PT. Integra Mining Nusantara. All charges in connection of establishing Letter of Credit are PT. Integra Mining Nusantara account.

Term of Delivery
30 days max. after receive the L/C

Price Computation Formula:
LME price based on the previous months average

USD (Ni-LME Price) x (0.65WMT for 35% Moisture Content) x (0.01 for 1% Ore Grade) x (0.150 LME Recovery Factor 15.0% for Ni 1%)

Schedule of LME Recovery Factor
Grade LME Factor
0.90 to 1.10% --- 15.0%
1.11 to 1.39% --- 17.0%
1.40 to 1.60% --- 20.0%
1.61 to 1.89% --- 22.0%
1.91 to 2.0% up --- 25.0%