PRIVATE AND CONFIDENTIAL

FULL

CORPORATE OFFER
DATE: DEC. 18, 2014

Sellers, Guadalupe Martnez R. & GRUPO ZAKAMURA

S.A DE C.V.
We confirm that we are ready, willing and able to offer a contract, for the allocation tons
per month 70,000 (10% +/-) Metric tons.
Per month departing from Manzanillo, Colima

Additional Volume Increases can be amended into the agreement based on market conditions and
agreed between buyer and seller.
Every two months there will be an evaluation and price adjustment plus or minus based on
current market value of the commodity. If market prices do not fluctuate more than +/-5%, then

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the price will remain the same. If price fluctuates more than 7.5% in the same period then the
price will be adjusted.

TERMS OF TRANSATION
Commodity:
Origin:
Grade:
Rejection:
Term:

Iron Ore Lump

Magna Chanquehaui,Colima. Mexico

63.0 %( Fe)
61.0 %( Fe) right to rejection
12 MONTH CONTRACT

Co
ntract
Fiscal
Year:

January, 2015, THROUGH

November 2015 Contract Duration:

Ten (12) Months

PRICE; FOB Manzanillo port, USD$ 64.00/DMT, Subject to mutual agreement every 2
months between buyer and seller, in the case that international price fluctuates more than 5
% up or down the price will be revised and renewed.

Delivery:
Loading Port:

FOB
Manzanillo, Mexico

(Magna) Destination Port: CHINA

Shipment Terms:

Within (45) days from the actual arrival date of the Letter
of Credit in Confirming and Advising Bank in Mexico.

Payment Condition: T/T in favor of Zakamura S.A de C.V

Packing:

Bulk shipment, 70,000 DMT (+/-10%) x 12

Months
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1
0

0% at sight
DELIVERY SCHEDULE:

SHIPPING SCHEDULE
NO

MONTH

YEAR

SHIPMENTS

QuantityLoad(DMT)

January

2015

70,000

LOADING
PORT(MEXICO)

DESTINATION
PORT(CHINA)

SUB TOTAL
QTY(DMT)

Manzanillo
Mexico

Main China Port

70,000

march

2015

70,000

Manzanillo
Mexico

Main China Port

140,000

may

2015

70,000

Manzanillo
Mexico

Main China Port

210,000

70,000

Manzanillo
Mexico

Main China Port

280,000

july

2015

sep

2015

nov

2015

70,000

70,000

350.000

Manzanillo
Mexico

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Main China Port

420,000

Loading Port(s):

Port of, Manzanillo, Colima

Mexico

Shipping:

The Seller is Sub Contracting the Shipping to INTEGRACE SA DE CV

who will be responsible for arranging and booking the shipments,
providing all the shipping documentations and making the necessary
preparations for shipping the monthly allocation of iron Ore to One
Main China Discharge Port.

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Port/s of Destination:
Iron Ore Price (per MT): USD $64.00 /MT FOB

Price Adjustment: In case of the shipment of Iron Ore does not meet the chemical
specification set forth in the Contract, though inspection and according to
clause 9 of the Contract, the price shall be adjusted pursuant to the
provisions of clause 6 of the Contract as follows:
1. The base price shall be increased by USD $ 2.00/DMT for each 1% Fe above
63.00% and deducted USD $2.00/DMT for each 1% Fe less 61.00%, fraction
pro rata. If Fe below 61.00%, buyer has right of rejection.
For Other Elements: Decrease the base price:

2. For excess Silica (SiO2):At the rate of USD 0.05 per dry metric ton for each 1%
in excess of 6.00%
3. For excess alumina (Al203): At the rate USD 0.05 per dry metric ton for each 1%
in excess of 5.00%.
4. For excess Phosphorus (P): At the rate of USD 0.05 per dry metric ton for each
0.01% in excess of 0.10%.
5. For excess Sulphur (S): At the rate of USD 0.05 per dry metric ton for each
0.01% in excess of 0.10%.
6. For excess Mositure (H20): Seller to compensate for freight cost difference for
any moisture content in excess of guaranteed 8% Max.

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Note:

The final weight of the ore shall be determined by dry weight which means deducting
the free Moisture content from the wet weight.

Contract Terms
Divisible Payment for each shipment shall be accomplished in two (2) stage, namely as:
1. Provisional Payment / after crushing mineral by t/t At Site in patio
Manzanillo.
2. Final Payment before loading the vesel
3. Letter of Credit Payment Structure
1. A complete set of Clean on Board Ocean Bills of Lading, made out to order, blank
endorsed, marked Freight Prepaid or Freight Payable As Per Charter Party and
indicating the name of carrying vessel, voyage, and with the buyer ( ) as Notifying
Party in three (3) Original and three (3) non-negotiable copies, issue by the carrier party
stamped and signed by the Master of the vessel or Nominated shipping agent.
2. Provisional Commercial Invoice for advance payment covering total value of goods
according to the inspection of quantity and weight at the loading port in three (3) original
and three (3) copies indicating the contract number, number, name of the buyer, name of
the carrying vessel, voyage, name of the loading port, name of the intended discharge
port, wet weight and dry weight of the loaded on board, amount in unit price and
showing BONUS / PENALTIES for (Fe) content and other elements as well as penalty
for moisture and physical composition, amount in total, signed and sealed by the sellers
authorized personnel.
3. Certificates of Quality and Certificate of weight, in three (3) Original and three (3)
copies, issued by SGS in loading port, certifying shipment is in conformity with the
specs of the all requirements of this contract and the weight by draft survey and
indicating the name of buyer, the name of seller, the loading port, name of the carrying
vessel, voyager.

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4. Certificate of Origin, one (1) Original and three (3) copies, issued by

Chamber of Commerce in Mexico certifying shipment is originated in

Mexico.
5. Certificate of demurrage and the demurrage payment certificate or non-

demurrage certificate issued by the master of the vessel at the loading port.
L/C to incorporate clause asking for master SOF as a negotiating document
and any demurrage liability as per master SOF to be deducted from total
payment payable to seller upon negotiating payment immediately on
completion of shipment.
6. Packing List in one (1) Original and three (3) copies issued by Seller with

details such as name of the vessel, voyage, the loading port, the discharge
port, contract No., commodity name, dry weight and wet weight loaded on
board.

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SELLERS BANKING INFORMATION

BANAMEX

BANK NAME:

CALLE UNO NORTE PARQUE INDUSTRIAAL FONDEPORT

BANK ADDRESS:
ACCOUNT NAME:

GRUPO ZAKAMURA S.A de C.V

ACCOUNT NUMBER:

7005 4041193

SWIFT CODE:

BNMXMXMM

BANKER NAME:

MARCO IVAN GONZALEZ

BANKER NUMBER:

4697 SUCURSAL

Quality:

As per the SPECIFICATION OF GOODS

Guaranteed Specifications: The agreed composition (SGS chemical analysis), on natural basis
Percentage by weight, will be as follows:

Chemical

Guaranteed (Maximum)

Fe (Iron) :

62.0% (mnimum)

Fe (Iron) right to Rejection :

61.0%

SiO2 (Silicon Dioxide) :

4.50% Max.

Al203 (Aluminium Oxide) :

3.50% Max.

P (Phosphorus) :

0.10% Max. Rejection above 0.2%

S (Sulphur) :

0.10% Max. Rejection above 0.2%

Moisture :

8.00% Max.

Cao (Calcium Oxide)

2.00% Max

MgO (Magnesium Oxide)

0.80% Max

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Physical Property (Size)

(10-50mm) :3/8 a 2

90% Min.

(0-10mm) : 0 a 3/8

10% Max.

PROCEDURES:

Validity:

1) Seller issues FCO to Buyer

2) Buyer submits ICPO to Seller
3) Seller issues Contract and both Parties conduct comfort
conference calls.
4) Draft L/C
5) Buyer and Seller Sign and Seal Contract

The availability is valid for 2 (TWO) business days from the date of issuance
and subject to International Market Price variations, as well as the
Availability of the commodity if not accepted by expiration date.

Best Regards.

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Zakamura S.A de C.V

Miss. Guadalupe Martinez Rosales.
President.

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Location: Chanquehaui , Jalisco.

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MAGNA IRON ORE MINE

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PAGE 13

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PHOTOS Magna: Patio Manzanillo.

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Mine Title -Magna

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SGS REPORT: Magna

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