To: END Buyer
VIA: March 2012

USED RAILS R50-R65

CONDITION OF DELIVERY, CIF QUANTITY and PRICING:
10,000MT / 20,000 MT X 12 Months USD 410
20,500MT / 50,000 MT X 12 Months USD 400
50,500MT / 100,000 MT X 12 Months USD 390
Over 100,000 MT X 12 Months USD 380

HMS 1&2 (80/20) IRSI 200-206

CONDITION OF DELIVERY, CIF QUANTITY and PRICING:
10,000MT / 20,000 MT X 12 Months USD 370
20,500MT / 50,000 MT X 12 Months USD 360
50,500MT / 100,000 MT X 12 Months USD 350
Over 100,000 MT X 12 Months USD 340

ORIGIN: Russia – Ukraine - Spain

PORT OF LOADING: Tuapse, St Petersburg port, Vladivostok, Kandalaksha, Novorossiysk, Kholmsk,
Astrakhan, Korsakov, Murmansk

CUTS AT NO COST – NO UPFRONT FEES – BANK IN SPAIN


PROCEDURE

1. Buyer issues ICPO with Soft Probe Authorization and NCNDA-IMFPA.
2. SELLER issues FCO.
3. Buyer Signs FCO and returns to SELLER with a Letter of Acceptance.
4. SELLER issues Draft Contract open for amendments.
5. SELLER and buyer exchanges legalized and registered contracts and lodge in respective Bank.
NOTE:

The signed contracts are mandatory because it needs to be presented to the Russian Government to
obtain the permit for the Yard visit.

POP UP FRONT & PRO-FORMA INVOICE

6. The Seller provides the Buyer´s Bank with the Pro-forma invoice for the first month’s shipment and
the POP Documents for Buyer’s verification.
The seller sends Buyer’s invitation to visit the yard.

7. Buyer’s Bank issues a Non Transferable, Non operative RDLC. Seller’s Bank issues a 2% Performance
Bond in the face value of buyer’s payment instrument.
8. The SGS inspection will be borne by the Seller at the loading seaport, and Buyer at the unloading
seaport
9. Shipment commence as per contract.
10 Buyer releases payment to the Seller. Shipment Delivery per shipping schedule program via Swift
Fund Transfer within 5 banking days after the charge of product and receipt of the entire relevant
shipping document for immediate negotiation and credited at Buyer’s Bank Account.


PRODUCT DESCRIPTION AND SPECIFICATION

Seller guarantees to the Buyer that the Goods delivered under the present Contract shall correspond to
the characteristics shown below: ISRI USA GOST 2787-75 Russia HMS 1&2 (80/20) ISRI 200-206 Steel
scrap defined as HMS 1 & 2 in an 80/20 mix under ISRI codes 200 through 206. Non-metal impurities
total 1% (one percent) or less - no radiation, arms, ammunition, bombs, shells, mines, cartridges,
sealed gas cylinders. High carbon steel is not included in this scrap -we sell that as a separate item.
HMS 1- ISRI CODES HMS 1 - ISRI Code 200: Heavy melting steel. Wrought iron and/or steel scrap ¼ inch
or steel scrap ¼ inch and over in thickness. Individual

Pieces not over 60 x 24 in (charging box size) prepared to insure compact charging. HMS 1 - ISRI

Code 201: Heavy melting steel 3 feet x 18 inches. Wrought iron or steel scrap ¼ inch over in thickness
individual pieces not over 36 inches x 18 inches (charging box size) prepared in a manner to insure
compact charging.

HMS
1 - ISRI Code 202:


Heavy melting steel 5 feet x 18 inches. Wrought iron or steel scrap1.4 inch and over in thickness
individual

Pieces not over 60 inches x 18 inches (charging box size) prepared in a manner to insure compact
charging. HMS

2 - ISRI CODES HMS 2 - ISRI Code 203:

Heavy melting steel. Wrought iron or steel scrap, black and galvanized. 1/8 inch and over in thickness,
charging box size to include material not suitable as No.1 heavy melting steel. Prepared in a manner to
ensure compact charging. HMS 2 - ISRI Code 204: Same as ISRI 203 but max size 36x18 inches. HMS 2 ISRI
Code 205: Same as ISRI 204 but free of sheet iron or thin-gauged material. HMS 2 - ISRI Code 206:
Same as ISRI 204, but max size 60 x 18 inches.

R50-R65 - IRSI CODES

The chemical composition is the standard for R-50 R-65 Tee rails original weigh 50 pounds per yard or
heavier, 6 meters long and over. Material to be suitable for re-rolling into bars and shapes. Free from
bent and twisted rails, frog, switch and guard rails, rails with split heads and broken flanges.
Continuous welded rail may be included provided no weld is over 9 inches from end of the piece of rail.
Free from Fluff, Nonferrous inclusions, excessive rust and other impurities. Free from war and
explosives, shells, cartridges, other arms and ammunitions used or otherwise and any closed
containers. Free from any radioactive materials, any harmful chemicals, substances, and coatings any
organic waste any other harmful substances. Dirt, dust, rust fluff and other impurities not allowed over
0, 5%. The rails are to be neatly bundled and secured with iron wire or straps, provided with adequate
lifting hooks. Individual bundles not to exceed 5 MTW.

USED RAILS R50 - R65
Chemical Composition Used Rails: C: 0, 54-0, and 82
Si: 0, 18-0, 40
Mn: 0, 60-1, 05

S: 0.04 max
P.: 0,035 max

As.: 0, 01 max of Mass share
Norms: R-50 GOST-7173-75 and R-65 GOST-8165-75
The scrap consists of R-50 (51, 67 kg/m) R-65 (64, 72 kg/m) Used Rail
ISRI 27-29
ISRI-CODES:

(27) Rail, Steel No. 1.Standard section tee rails, original weight 50 pounds per yard or heavier, 10 feet
long and over. Suitable for re-rolling into bars and shapes. Free from bent and twisted rails, frog,
switches, and guard rails, or rails with split heads and broken flanges. Continuous welded rail may be
included provided no weld is over 9 inches from the end of the piece of rail.
28A) Rail, Steel No. 2 Cropped Rail Ends. Standard section, original weight of 50 pounds per yard and
over, 18 inches long and under

(28B) Rail, Steel No. 2 Cropped Rail Ends. Standard section, original weight of 50 pounds per yard and
over, 2 feet long and under.

(28C) Rail, Steel No. 2 Cropped Rail Ends. Standard section, original weight 50 pounds per yard and
over, 3 feet long and under.

(29) Rail, Steel No. 3.Standard section tee, girder, and/or guard rails, to be free from frog and switch
rails not cut apart, and contain no manganese, cast, welds, or attachments of any kind except angle
bars.
Free from concrete, dirt, and foreign material of any kind. The rails can be cut to the length the buyer
wants.

The following documents will accompany the used rail on delivery:

1. Commercial Invoice
2. SGS Certificate
3. Certificate of Decontamination
4. Photo of the products, Past Performance Records.
5. AQSIQ Certificate
6. Export Permit Certificate and Export License
7. Certificate of Ownership
8. Certificate of Origin issued and endorsed by Government.
9. One Original Certificate of Weight.
10. Certificate of Guarantee and Immunity,
11. Original Copy of Bill of Lading.
12. Certificate of Non Radiation
13. Copy of Cable or Fax sent to the Buyer, within forty eighty (48) hours, advising particulars of
shipment after loading of the product,

BUYER PAYS $4.00 FEES 50% / 50%

NO OVERPRICE