Dear Sir,

Sub: Offer for supply of High Carbon Ferro Chrome.

We, M/s. Poonam Minerals Private Limited do hereby send our offer for supply of High Carbon Ferro Chrome as per the following terms & conditions:

COMMODITY : High Carbon Ferro Chrome.

ORIGIN : India.

SPECIFICATIONS :

Cr : 60%

Si : 3-4% Max.

C : 6-8% Max.

P : 0.035% Max.

S : 0.05% Max.

SIZE : 10-100mm (+/- 10% Tolerance)

QUANTITY : 100MT (+/-10% at Sellers option).

PACKING : Material will be packed in Jumbo Bags of 1MT.

PRICE : USD 1.35/Pound or USD 1786 PMT on 60% Cr Pro-rata C&F, Xingang Port, P.R. China.

PAYMENT : By Irrevocable & Confirmed Letter of Credit from a Prime Bank payable 100% at sight.

SHIPMENT : January 2008.

QUALITY : Third Party Inspection Report by SGS at the Load Port will be final & binding on both the parties. Buyer can depute their representative during Pre-shipment Analysis.

VALIDITY : This offer is valid for your acceptance for 3 Days & thereafter subject to our confirmation only.

Should you require any further clarifications, please feel free to contact us.

We are confident that you will find offer competitive and await your confirmation of the same.

We assure you of best of our services at all times and look forward to earn the finalisation of the contract and join hands for a long term business relation.

Thanking you,

With regards,

M.V.R.Murthy,

Managing Director,

Poonam Minerals Pvt. Ltd., Vizag, India,

Ph: 91-891-2703855,

Fax: 91-891-2706251,

Mobile: 91-9848085278.