Barcoal S.A

Company Description

Date: OCTOBER 4 / 2008To: COAL TYPE “B” SOFT OFFERWe BAR-COAL on behalf of The Community Sellers, authorized by COAL SELLER, declares under penalty of perjury that THE SELLER is ready, willing and able to sell the commodity under the following terms and conditions:Product: High Quality Steam/Thermal CoalGrade: Type B.Quantity: from 30.000 MT/month to 1.000,000 MT/monthPacking: bulkAnalysis: Type “B” typical. See specifications in annex 1.Loading Port: PORT DESIGNATED BY BUYER Loading rate: 10.000 to 12.000 MT/HRShipping: 30.000 MT up to 150.000 MT eachPRICE: For final burner NYSE + USD$3 (Commissions payable by buyer) x MT FOB PORT DESIGNATED BY BUYER (Atlantic Coast)FINAL PRICE: NYSE New York settlement on the day of contract signing.PRICE REVISION: Each six months.CONTRACT PERIOD: One (1) to Five (5) years with roll and extensionsINSPECTION: Quality & quantity by SGS.QUARANTEES: To be agreed up on the day of TTM.ANNEX 1: QUALITY PLANNING SUMARY B TYPEEXPORT QUALITY, AS RECEIVED BASISAVG RANGEProximate Analysis % % WtGross Heating value:BTU/lb 11.700 11.899Kcal/Kg 6.500 6.611Net Heating Value:BTU/lb 11.147 11.346Kcal/Kg 6.193 6.303Total Sulfur 0.50 0.79Ash 6.30 9.30Volatile Matter 33.00 34.80Total Moisture 10.20 12.80Equilibrium Moisture 7.60 9.00Fixed Carbon 46.10 48.30Ultimate Analysis % %WMoisture % 10.20 12.80Carbon,% 61.90 67.70Hydrogen,% 4.50 4.90Nitrogen,% 1.10 1.26Chlorine,% 0.01 0.07Sulfur,% 0.50 0.79Ash,% 6.30 9.30Oxygen,% 6.72 9.72Other AnalysisHGI 45 51Fluorine ppm 30 60FSI 1.5 3.5Sulfur FormsPyrite,% 0.20 0.32Sulfate,% 0.01 0.07Organic,% 0.32 0.52Total,% 0.50 0.79SizeNominal Top Size inches% wt. ¼ Kt. 42.0 51.0mmOperations managerABDUL ABAD FUENTES1-786-287-9795