3.2 Transferable DLC Payment via DLC the transferable and divisible DLC is the standard payment instrument we expect

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1 Payment Alternatives 1. Introduction Dealing with raw material seller offers flexible and innovative financing systems and payment terms - customized to our clients` individual requirements as follows: Payment via Telegraphic Transfer by SWIFT (TT) Documentary Letter of Credit (DLC) Standby Letter of Credit (SBLC) Bank Guarantee (BG) Cash Bank Deposit (CBD) 2. Telegraphic Transfer by SWIFT (TT) We accept this payment method only in connection with a Standby Letter of Credit 3 to 4 months, a Bank Guarantee or a Cash Bank Deposit. This TT will be required once the bank to bank Bill of Lading has been send and confirmed by the buyer bank contacting the ship captain to verify goods are actually loaded on the vessel. 3. Documentary Letter of Credit (DLC) 3.1 Non Transferable Documentary Letter of Credit (DLC) We accept non transferable DLCs as payment instrument in our raw material arrangements but this attracts a higher cost per Metric Ton. In the event of acting as trader or as ordering party of the shipment we need to issue back-to-back DLCs. This is an extremely complex and expensive procedure. Some raw material groups do not allow any payment via non-transferable DLCs. Please kindly ask us to get more details. 3.2 Transferable DLC Payment via DLC the transferable and divisible DLC is the standard payment instrument we expect Verbiage required for Transferable DLC 40A: FORM OF DOCUMENTARY LETTER OF CREDIT IRREVOCABLE, TRANSFERABLE, DIVISIBLE 20: DOCUMENTARY CREDIT NUMBER 31C: DATE OF ISSUE 31D: DATE AND PLACE OF EXPIRY 51A: APPLICANT BANK 50: APPLICANT 59: BENEFICIARY SELLER 32B: CURRENCY CODE, AMOUNT USD "MONTHLYVALUE" 41A: CREDIT AVAILABLE WITH HASE HKHH BY PAYMENT 42C: DRAFTS AT DRAFT TO BE DRAWN AT SIGHT 43P: PARTIAL SHIPMENTS ALLOWED 43T: TRANSSHIPMENTS NOT ALLOWED 44A: SHIPMENT FROM X PORT 44B: SHIPMENT TO PORT 44C: LATEST DATE OF SHIPMENT 90 DAYS AFTER THIS DL/C IS OPERATIVE

2 45A: DESCRIPTION OF GOODS AND / OR SERVICE COVERING "QUANTITYMONTH" MT OF "GOODS" IN ACCORDANCE TO BENEFICIARY PRO-FORMA INVOICE REFERENCE DATED AT PRICE OF USD PER MT CIF PORT 46A: DOCUMENTS REQUIRED DOCUMENTS AS AGREED AND AS PER SALE / PURCHASE CONTRACT NUMBER ORGAKOM SIGNED COMMERCIAL INVOICE INDICATING THE TOTAL AMOUNT OF VALUE OF THE DELIVERED COMMODITY, 3/3 ORIGINAL AND COPIES CERTIFICATE OF ORIGIN IN ONE (1) ORIGINAL AND THREE (3) COPIES ISSUED BY RELEVANT AUTHORITY FULL SET OF ORIGINAL OF CLEAN SHIPPED ON BOARD OCEAN BILL(S) OF LADING SIGNED BY MASTER OF VESSEL MADE OUT TO ORDER OF ISSUING BANK AND NOTIFY THE APPLICANT AS INDICATED IN RELEVANT LETTER OFCREDIT, MARKED "FREIGHT PREPAID" SHOWING TOTAL ACTUAL GROSS/NET WEIGHT SHIPPED, THREE (3) ORIGINALS AND THREE (3) COPIES QUALITY AND QUANTITY CERTIFICATES (IN THIS CASE FOR METAL SCRAP) AND DRAFT SURVEY REPORT FOR NON RADIOACTIVITY, NON-WOOD SUBSTANCE, FOREIGN ATTACHMENT, PLASTIC, WOOD, DUST, STONES, HEAVY RUSTY MATERIALS, WITHOUT HARMFUL IMPURITIES AND TOTALLY FREE OF ANY TYPE OF EXPLOSIVES, INCLUDING BUT NOT LIMITED TO BOMBS, ARMS, AMMUNITIONS, TORPEDOES, MINES, SHELLS, CARTRIDGES, SEALED CONTAINER OR ENVELOPES, COMPRESSED GAS CYLINDERS, EXPLOSIVE MATERIALS ETC., ISSUED BY SGS AT LOADING PORT - TWO (2) ORIGINALS AND TWO (2) COPIES. 47A: ADDITIONAL CONDITIONS SPELLING AND TYPOGRAPHICAL ERRORS / MISTAKES ARE NOT AND SHALL NOT TO BE CONSIDERED AS DISCREPANCIES THIS CREDIT IS NON OPERATIVE AND SHALL BECOME OPERATIVE BY FURTHER AMENDMENT FROM US UPON RECEIPT OF A 2% OPERATIVE PERFORMANCE BOND GUARANTEE AT OUR BANK COUNTER THE LETTER OF CREDIT IS SUBJECT TO UCP FOR DOC. CREDITS ICC PUBLICATION NUMBER 500 (1993). THIRD PARTY DOCUMENTS INCLUDING SHIPPER ACCEPTABLE 39A: VARIATIONS IN L/C AMOUNT 5% PLUS OR MINUS IN QUANTITY AND LC AMOUNT ACCEPTABLE. 71B: CHARGES ALL BANK CHARGES IN APPLICANT COUNTRY INCLUDING ALL AMENDMENT CHARGES, IF ANY, ARE FOR THE ACCOUNT OF THE APPLICANT. ALL BANK CHARGES IN THE BENEFICIARY COUNTRY ARE FOR THE ACCOUNT OF THE BENEFICIARY ACCOUNT EXCEPT AMENDMENTS TO THE LC AS REQUIRED BY THE BENEFICIARY. ALL CHARGES OF SECOND BENEFICIARY`S BANK ARE FOR ACCOUNT OF SECOND BENEFICIARY.

3 48: PERIOD OF PRESENTATION DOCUMENTS TO BE PRESENTED NOT LATER THAN 21 BANKING DAYS AFTER THE DATE OF SHIPPING, BUT IN ANY EVENT NOT LATER THAT THE EXPIRY DATE OF THE CREDIT. 49: CONFIRMATION INSTRUCTIONS 53A: REIMBURSING BANK 78: INSTRUCTIONS TO PAYING / ACCEPTING / NEGOTIATING BANK UPON PRESENTATION OF CREDIT COMPLETE DOCUMENTS AT YOUR COUNTER, YOU ARE AUTHORISED TO EFFECT PAYMENT TO BENEFICIARY & CLAIM REIMBURSEMENT BY SWIFT MESSAGE TO US CONFIRMING THAT STRICTLY CREDIT COMPLYING DOCUMENTS HAVE BEEN COURIERED TO OURSELVES, INDICATING COURIER NO. & DATE. 57A: ADVICE THROUGH "BANK -BIC 4. Standby Letter of Credit (SBLC) The Standby Letter of Credit is the ordinary US-Version of Bank Guarantee. Validity of the SBLC must be 467 days (60 days until the first shipment 365 days 21 days Shipping time 21 days period allowed for payment and arranging documents). Value of the SBLC must be the value of 3 monthly shipments. Please find our SBLC format below. No other verbiage can be accepted. Monthly payments can then be made by Telegraphic Transfer by SWIFT (TT) (see Pt. 2 above). Verbiage required for SBLC Standby Letter of Credit NAME OF ISSUING BANK : NAME OF BENEFICIARY'S BANK : NAME OF APPLICANT : FOR VALUE RECEIVED, WE. (NAME OF ISSUING BANK). HEREBY ISSUE OUR IRREVOCABLE, TRANSFERABLE, STANDBY LETTER OF CREDIT NUMBER XXXXXXXX IN FAVOUR OF (SELLER), AND UNDERTAKE TO PAY YOU AT FIRST DEMAND AT OUR COUNTER'S AN AGGREGATE AMOUNT OF USD XX,XXX,XXX.XX (UNITED STATES DOLLARS ) UPON CERTIFICATE OF REQUEST FOR PAYMENT ISSUED BY SELLER, STATING THAT THE AMOUNT CLAIMED HAS BECOME DUE AND REMAINS UNPAID. THIS STANDBY LETTER OF CREDIT IS VALID FROM. (DATE OF ISSUE) UNTIL. (DATE OF EXPIRY). AND WILL EXPIRE AUTOMATICALLY. ANY CLAIMS UNDER THE STANDBY LETTER OF CREDIT CAN BE PRESENTED NOT EARLIER THAN FIFTEEN (15) DAYS FROM THE DATE OF EXPIRY BUT WITHIN THE VALIDITY OF THIS STANDBY LET- TER OF CREDIT. SUCH PAYMENT SHALL BE MADE WITHOUT SETOFF AND FREE AND CLEAR OF ANY DEDUCTIONS OR CHARGES, TAXES, LEVIES, DUTIES OR WITHHOLDING OF ANY NATURE NOW OR HEREAFTER IMPOSED, LEVIED, COLLECTED, WITHHELD OR ACCESSED BYTHE GOVERNMENT OF (NAME OF ISSUING COUNTRY).

4 WE HEREBY ENGAGE WITH YOU THAT THE CLAIM DRAWN HEREUNDER IS STRICTLY IN COMPLIANCE WITH THE TERMS OF THIS STANDBY LETTER OF CREDIT AS EXPRESSLY STATED HEREIN SHALL BE DULY HONOURED ON THE DUE PRESENTATION OF THE ABOVE STATED STIPULATED HEREIN AT OUR COUNTER'S IN ACCORDANCE WITH THE TERMS AND CONDITIONS STATED IN THIS STANDBY LETTER OF CREDIT. THIS STANDBY LETTER OF CREDIT IS SUBJECTTO I.C.C. FOR DOCUMENTARY CREDITS (1993) REVISION) ICC PUBLICATION Bank Guarantee (BG) An acceptable Bank Guarantee must have a definite format. The Bank Guarantee must be valid 467 days (60 days until the first shipment 365 days 21 days shipping time 21 days period allowed for payment and arranging documents). Value of the BG must be the value of min 3 monthly shipments. Monthly payments can then be made by Telegraphic Transfer by SWIFT (TT) (see Pt. 2 above). Please find our BG format below. No other format can be accepted. Verbiage required for Bank Guarantee REGISTRATION : CURRENCY : UNITED STATES DOLLARS. AMOUNT : 100% FACE VALUE. MATURITY DATE : ISSUED BY : ISSUE DATE : FOR VALUE RECEIVED, WE THE UNDERSIGNED --ISSUING BANK--HEREBY IRREVOCABLY AND UNCONDITIONALLY WITHOUT PROTEST OR NOTIFICATION PROMISE TO PAY TO - BENEFICIARY-- AGAINSTTHIS IRREVOCABLE AND UNCONDITIONALUNITED STATES DOLLAR BACKED BANK GUARANTEE THE PRINCIPAL SUM OF -100% OF FACE VALUE UNITED STATES DOLLARS AT MATURITY UPON PRESENTATION AND SURRENDER OF THE GUARANTEE AT THE OFFICES OF -NAME AND ADDRESS OF ISSUING BANK-FURT- HER, THE BENEFICIARY OF THIS, OUR BANK GUARANTEE SHALL BE HELD HARMLESS OF ANY LITIGATION WHICH MAY ARISE. SUCH PAYMENT SHALL BE MADE WITHOUT SET OFF, FREE AND CLEAR Of ANY CHARGES, FEES, DEDUCTIONS OF WITH HOLDINGS OF ANY NATURE NOW OR HEREAFTER IMPOSED, LEVIED, COLLECTED, WITHHELD OR ASSESSED BYTHE GOVERNMENT OF -COUNTRY OF THE ISSUING BANK--OR ANY POLITICAL SUBDIVISION OR AUTHORITYTHEREIN. THIS IRREVOCABLE, UNCONDITIONAL BANK GUARANTEE IS NOT CALLABLE BY -THE ISSUING BANK-UNTIL MATURITYAND IS FULLY ASSIGNABLE, TRANSFERABLE AND DIVISIBLE. THIS GUARANTEE SHALL BE GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF -COUNTRY OF ISSUING BANK--. THIS GUARANTEE IS AN OPERATIVE FULLY CONFIRMED INSTRUMENTAND IS SUBJECT TO THE UNIFORM CUSTOM AND PRACTICES FOR DOCUMENTARY CREDITS OF THE INTERNATIONAL CHAMBER OF COMMERCE (ICC) PUBLICATIONS NUMBER 500 (1993 ULTIMATE REVISIONS) AND ENGAGES US IN ACCORDANCE WITH TERMS THEREIN.

5 6. Cash Bank Deposit (CBD) The Cash Bank deposit is the most interesting and safest payment alternative for our clients. The buyer deposits the agreed amount (usually to the value of 3 or 4 monthly deliveries, validity 455 days for an annual contract) into Sellers account. In return he receives a Bank confirmed promissory note for the full amount of the cash bank deposit DvP (delivery versus payment). This promissory note can be discounted and used as collateral by buyer during the whole period. Monthly payments for the contractual goods can then be made by Telegraphic Transfer by SWIFT (TT) (see Pt. 2 above) THE PROCEDURE IS AS FOLLOWS: 1. WE REACH AGREEMENT WITH THE BUYER ON THE BANK WHERE THE BANK DEPOSIT SHOULD BE PROCESSED. 2. THE BUYER PROVIDES DOCUMENTS PROVING HIS ABILITY TO DEPOSIT THE AGREED AMOUNT WITHIN THE AGREED TIME PERIOD. 3. WE REACH AGREEMENT WITH THE BUYER ON A SALES AND PURCHASE CONTRACT OF THE REQUIRED COMMODITIES (IRON ORE, SCRAP STEEL, UREA, CEMENT, STEAM COAL ETC.) REGARDING THE DEPOSIT CONTRACT. 4. THE BUYER TRANSFERS THE AGREED DEPOSIT-AMOUNT INITIALLY TO AN ESCROW ACCOUNT AT THE AGREED BANK - ON CONDITION THAT THE DEPOSIT- AMOUNT IN THIS ESCROW ACCOUNT WILL BE TRANSFERED DVP (DELIVERY VERSUS PAYMENT) TO SELLER`S ACCOUNT AGAINST THE STIPULATED BANK CONFIRMED "COMPANY PROMISSORY NOTE" - VALUE OF THE TOTAL AMOUNT OF THE CASH DEPOSIT. 5. THE BANK PASSES THE PROMISSORY NOTE OVER TO THE BUYER AND TRANSFERS IN RETURN THE DEPOSIT AMOUNT IN TO SELLER`S ACCOUNT. 6. THE PROMISSORY NOTE CAN THEN BE USED BY THE BUYER AS A FINANCIAL TOOL CAN BE DICOUNTED OR PASSED OVER TO ANOTHER PARTY. 7. AFTER HAVING PRESENTED THE PROMISSORY NOTE AT THE BANK ON MATURITY THE BANK WILL PAY THE TOTAL AMOUNT OF THE PROMISSORY NOTE TO THE PERSON THAT SUBMITS IT. 8. THIS PROCEDURE OFFERS A 100% SECURITY TO THE BUYER.