XIAMEN C&D INC.

Add: 5th-7th FLR. SEASIDE BLDG. XIAMEN, CHINA

LETTER OF INTENT()
TO: Name: PT. PHORANDEZ INTERNATIONAL Address: Duta Mas No. 26 Batam Center Batam Riau 29432 Indonesia TEL:62-812-70012048 Attention: Mr. Indra M Dear Mr. Indra M We, Xiamen C&D Inc, are ready willing and able to purchase the commodity Steam Coal as per the terms and condition given below.: ,

1. Commodity: Steam Coal 2. Specification

Parameter Total Moisture Inherent Moisture Ash Content Volatile Matter Fixed Carbon Total Sulphur NET Calorific Value HGI Basis ARB ADB ADB ADB ADB ADB ARB 40-50 Contract Basis 18%basis 10%basis 14% 40% BY DIFFERENCE 1% MAX 5500Kcal/kg 1%above 5300Kcal/kg below 40below Rejection 20%above 12%above 18%above 45%above

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XIAMEN C&D INC.

Add: 5th-7th FLR. SEASIDE BLDG. XIAMEN, CHINA
0-50mm 90% Over 50mm>10%

Size Ash Melting Point

1250 Celsius

below 1200 Celsius

3. Port of loading: Indonesia : 4. Quantity: 100,000 MT/MONTH 10 5. Shipment: 50,000 Metric tons / in bulk . : 50,000 / 6. Shipping: The goods shall be loaded within 30 days after receipt of the sellers Documentary Letter of Credit in the Sellers bank 30 7. Price: USD$ 88.5 /- per metric ton FOB KALIMANTON, INDONESIA 88.5 FOB 8. Payment : Within three (3) working days upon contract signed, the Seller shall issue 2% Performance Guarantee of 100% cargo value for the contract value in favour of the Buyer via the mutually agreed Bank Channel as the Guarantee of shipment. The Buyer shall open an Irrevocable, Non-transferable at Sight documentary Letter of Credit in favor of Seller covering 100% of the contract value in 3 working days after the receipt of the PB. If the Seller fails to carry out the shipment as per the contract, the performance bond for 2% of the contract value will be forfeited to the Buyer. 5 2% , 100% 9. INSPECTION-QUANTITY/QUALTY DETERMINATION Seller and Buyer mutually agree that the internationally recognized first class Independent Surveyor Company SUCOFINDO INDONESIA shall be appointed at designated loading port and Chinese CIQ at the discharge port, to assess the quality and quantity of the cargo. The quality and weight inspection result carried by SUCOFINDO INDONESIA at the loading port shall be

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XIAMEN C&D INC.

Add: 5th-7th FLR. SEASIDE BLDG. XIAMEN, CHINA

the basis of the Sellers invoice, which should be presented to the bank with other documents, which should be faxed to Buyer for Customs Clearance. The inspection costs at loading port shall be for the Sellers account; while at discharging port shall be the Buyers account. SUCOFINDO , CIQ ,. , , SUCOFINDO ; CIQ .. 10.Origin: Indonesia ARBITRATION: Applicable As per CIETAC (Refer to the contract of sale) CIETAC (.) FORCE MAJEUR: Applicable As per standard Definition. (Refer to the contract of sale) (.)

Buyers banking detail: BANK NAMEBANK OF CHINA XIAMEN BRANCH ADDNORTH HUBIN ROAD, BOC BUILDING, XIAMEN CHINA TEL: 0592-5317606 FAX:0592-2033620

BENEFICIARY: XIAMEN C&D INC. 17TH FLR., SEASIDE BUILDING, XIAMEN CHINA TEL: 0086-592-2071588 FAX: 0086-592-2020394 A/C405258391510 SWIFT NO.: BKCHCNBJ73A
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XIAMEN C&D INC.

Add: 5th-7th FLR. SEASIDE BLDG. XIAMEN, CHINA

17 405258391510 SWIFTBKCHCNBJ73A : NOTES: THE ABOVE CONTENT IS THE INITIAL INTENTION OF THE BUYER AND ONLY FOR THE SELLERS REFERENCE. AND ALL OBLIGATIONS AND RESPONSIBILITIES OF BOTH PARTIES SHALL BE SUBJECT TO THE ORIGINAL CONTRACT SIGNED BY THE BOTH PARTIES FORMALLY AFTER ALL CONTRACT DETAILS BE SETTLED.

XIAMEN C&D INC. Representative: Date:2011/12/27

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