We hereby confirm with Full Legal Authority and Responsibility that weare prepared to enter into a contract to sell the commodity asspecified below as well as the permits needed to fulfill thistransaction ;

Termsand Conditions:

Commodity :Indonesian Steaming Coal

Origin :South Kalimantan, Indonesia

Packing :Bulk

Specification : (Please find attachmenth)

UnitPrice Cal 63-61 : USD 82.00 PMT FOB ( Freigh on Vessel )

UnitPrice Cal 58-56 : USD 62.00 PMT FOB ( Freigh on Vessel )

UnitPrice Cal 55-53 : USD 53.00 PMT FOB ( Freigh on Vessel )

UnitPrice Cal 53-51 : USD 49.00 PMT FOB ( Freigh on Vessel )

Payment :By Letter of Credit at sight ( By HSBC Bank Only )

Priceadjustment : Every Shipment Depend the market price

Delivery :Within 40 after operative L/C

Capacity :50,000 MT/shipment Depend wheather

Transshipment :300 ft barge

Coalsource : PT.BATU GUNUNG MULIA,CV.CAHAYA ABADI Binuang

LoadingPort :PIJAR, BASS,PELINDO Banjarmasin,South Kalimantan

Loadingrate (Jetty) : 2,500MT PWWD SHINC

Anchorage :Tabone Anchorage Point, South Kalimantan

Inspection : Quality and Quantity determined at Mother Vessel by anAcceptable Independent Surveyor (GEOSERVICES LTD). All of costsand charges of inspection incurred will be distributed by Seller.

Validity :Within 7 working days from issuing date

Remarks :- Mining Name: PT.Batu Gunung Mulia, or substitud

- Coal Origin at Area Code: binuang, South of Kalimantan

- Concession: Kuasa Pertambangan (4000 Ha)

- Coal Concession Area (Coordinates): to be informed later.

- Product Capacity: 50.000 MT/Month

- Estimated Coal Reserve Volume: 6,000,000 MT

- Price should be evaluated in every month for annual contract

- In case that the Indonesian Government impose coal Export Tax, theunit price will increase accordingly.

- Site visit: Can be arranged at buyers cost after ContractSigning.

Ifthis offer has attracted your full attention and acceptance, so thendo proceed the issuance for the Irrevocable Corporate Purchase Order(ICPO) which is enable us to process the next step for this trading.