KP IRON ORE

EXECUTIVE SUMMARY IRON ORE at MUSI RAWAS, INA Location : Musi Rawas, South Sumatera, Indonesia Total Area : 3,266HA Exploitation, Transportation and Selling Permit for 1,343 Ha: No. 545/22/DPE/2005 dated December 27, 2005 Distance from Mining Site to Stock Yard : 1 km Distance from Stock Yard to Stock Pile at Trans Sumatra Road : 25 km Distance from Stock Pile to Jetty : 215 km Depth of Ponton : 270 Feet Production Capacity : 30,000 MT/mth; upgraded to 50,000 MT/mth 1st Delivery : 2 months after Contract Signing No Location Width (m2) Thick (m) BD Potential Reserve (Ton) A. PREMIER IRON ORE 1 Sungai Pinang 24,630.00 9.00 5.2 1,152,684.00 2 Sungai Tandoi Kiri 6,948.00 9.00 5.2 325,166.40 3 Sungai Menalu 1,920.00 6.00 5.2 59,904.00 4 Sungai Suban 4,457.00 2.50 5.2 57,941.00 5 Sungai Padang 686.00 6.00 5.2 21,403.20 1,565.00 6.00 5.2 48,828.00 B. DELUVIAL IRON ORE 1 Sungai Tandoi Kiri 13,370.00 3.00 5.2 208,572.00 14,400.00 3.00 5.2 224,640.00 2 Sungai Tandoi Kanan 9,835.00 3.00 5.2 153,426.00 3 Sungai Pinang Kecil 963.40 3.00 5.2 15,029.04 GRAND TOTAL 78,774.40 2,267,593.64 IRON ORE Reserves (TON) IRON ORE: PRIMER /DELUVIAL PRIMER DELUVIAL TOTAL PULAU KIDAK 1.531.400 599.976 2.131.376 JANKAT 129.168 351.000 480.168 TOTAL SUMBER BIJI BESI 1.660.568 950.976 2.611.544 RESULT OF TEST/ANALYSIS (conducted by PT. ZhongYe Mineral Res’) Total Iron (Tfe) 67,15% Silicone Dioxide (SiO2) 1,78 % Aluminium Trioxide (Al2O3) 0,76% Phospor (P) 0,029 % Sulfur (S) 0,017 % Arsenic (As) 0,002 % THE OFFER: 1. Trading, Price is FOB 65 US$/MT, with 50% Down Payment, could be delivered within 2 months after Signing Agreement and received Down Payment. 2. Partnership, to inject working capital in amount of 600,000 US$ for pre-production phase.