To: PT.

Pacific Minrals Kalimantan

Our Ref.: LOI-IRON-0420
Date: Apr. 20th, 2011
Letter of Intent
Dear Sirs,

This letter is our official intention for trading Iron Ore in bulk, we, Illwoo Logistics Co., Ltd., are
willing to buy following term and conditions:
Product             :  Iron Ore Total Fe 63% reject, if Total Fe is below 61%
Country of Origin :  Kalimantan in Indonesia
Quantity            :  Min. 30.000Mt & Max. 60.000Mt per month
First shipment      :  Within 45 days after receipt of L/C in favor of you
Contract Period   :  Twelve (12) months (Price would be revised at every 4 months)
and Extension of contract is subject to Buyer & Seller`s Agreement.
Price               :  US$ 87/DMT (Dry Metric Ton) FOB Mother Vessel
Shipment           : Conventional Bulk Vessel
Inspection          : Quality, Quantity & Weight should be certified by SGS Singapore
                     under Seller`s cost at loading port
Proof of Products : Bill of Lading, SGS Lab Report and Draft survey report not older than
3 months
Payment            : Irrevocable Transferrable Letter of Credit
Performance Bond : 15% of value of monthly shipment
Bonus               : US$ 1.38 for every 1% of additional Fe prorated
Penalty             : US$ 1.38 for every 1% of Fe short prorated
Size                  :  Lump 6.5mm~31.5mm, Fine max. 6.5mm
Chemical Composition (ON DRY BASIS)
PERCENTAGE BY WEIGHT
Iron Ore (Fe)               : 63% basic, reject if below 61.0%
Silica(SiO2)                : 3.0%, above 3.5% reject
Aluminum(Al2o3)           : 2.0%, above 2.5% reject
Sulphur(S)                 : 0.06%, above0.09% reject
Phosphorus(P)             : 0.06%, above0.09% reject
Titanium Dioxide(TiO2)      : 0.06%, above0.09% reject
Mn                        : 1.0%, above 1.5% reject
Mgo                       : 0.06%, above0.09% reject
Moisture                   : 1.0%, above2.0% reject

By : ILLWOO LOGISTICS CO., LTD.

CEO. MR. J.Y. GOO