LTO Purchase and Sale Contract

Buyer: Hebei Yintong New Energy Co., Ltd

(hereinafter referred to as Party A)

Contact method: 0310 ###-###-####

Supplier: Northern Altair Nanotechnologies Co., Ltd.

(hereinafter referred to as Party B)

Contact method:

S/N

Name of materials

Specification and model

Unit

Quantity

Unit price (RMB 10,000)

Total price (RMB 10,000)

Remarks

1

Lithium titanium oxide (LTO)

ALT-LTO-793

Ton

2,000.00

20

40,000

Including both 17% VAT and freight

The Agreement of the strategic cooperation price: under the consideration of strategic cooperation, Party B agrees to supply product at the cost price to Party A. In the earlier stage of the cooperation, under comprehensive considerations, Party A agrees to purchase the product at a price of RMB 200 per kg. Party B shall lower the price gradually to the cost price according to the consumption of Party A. The Specific Implementation Scheme: every 10t purchased by Party A, the unit price of Party B shall be dropped by 1% until a 20% drop. If there are major price changes in raw material market, both parties shall negotiate the price. This price is an internal price concluded for group purchasing, and Party A shall be strictly confidential.

1.

Party B shall guarantee its ownership and right of disposition of its product delivered to Party A without any mortgage right, lien or other rights that would obstruct Party A's using and selling of the product.

2.

Party B shall guarantee its product corresponding with the code requirements of international lithium electricity industry, and shall be applicable to the common standards and suitable for party A's production purpose. If failing to meet the quality standards or acceptance standards, Party B shall arrange the replacement freely within three (3) days after receiving the information from Party A. If failing to replace within three (3) days, Party B shall be deemed as overdue delivery, which shall be executed by Article 5, Clause 5 under this Contract.

3.

Party B shall guarantee its product safe without any hidden danger and shall not cause any personal and property damage during normal usage process. Party B shall bear relative liability for damage if there's any personal and property damage of any third parties arising from the product offered by Party B. Party A shall not be liable for any liabilities.

4.

Party B shall guarantee Party A free from any lawsuit, arbitration or any claims from the intellectual property by any third parties (including but not limited to patent, trademark right, copyright and non-patented technology) while using the whole or part of Party B's product. Party B shall take full responsibility for and bear all expenses arising from aforementioned incident.

5.

 If Party B fails to achieve the on-time deliver, Party B shall pay the liquidated damages of 1% of the total amount of the current order for every overdue day to Party A (including the situation of return and exchanging) and is obligated to pay to Party A additional amount for Party A's loss, if any. If the delivery is overdue for more than ten (10) days, Party A shall be entitled to refuse to accept the subject matter or terminate this Contract. Party B shall be liable for the economic loss arising from Party B's overdue delivery, namely Party B shall compensate Party A for its loss. If Party A makes an overdue payment without any justified reasons, Party A shall pay the liquidated damages for breaching of the contract to Party B according to the standards of the loan interest rates stipulated by the People's Bank of China for the corresponding period.

6.

Party B shall guarantee the expiration date of aforementioned product no less than two (2) years calculated from the day after the date of acceptance of Party A.

7.

All the participators in this project shall keep the business and technology secrets arising from performing of this Contract without revealing any information during any cooperation to any third parties. Otherwise, the default party shall bear the liquidated damages of breaching this Contract to the other party, and if the liquidated damages are not enough to cover the other party's loss, the default party shall compensate the loss.

Party A (seal): Hebei Yintong New Energy Co., Ltd

Party B (seal): Northern Altair Nanotechnologies Co., Ltd.

Representative (signature):

October 30, 2013

Representative (signature):

DD/MM/YYYY

S/N

Item

Specifications

1

Purity

≥97%

2

Particle size distribution

D10＞2µm; 12µm ＜D50 ＜ 16µm; D99 ≤45µm

3

Moisture content

≤500ppm

4

Surface Area (BET)

25-40m²/g

5

Tap density

1.00-1.20g/cm³

6

Specific capacity

≥150mAh/g