Contractfor Sales of Coal

1.

Receiver, Delivery Station, Commodity Specification, Quantity, Delivery Time and Quantity

2.

Place and Method of Delivery: at the Seller’s mine field

3.

Quality and Quantity Inspection & Acceptance Standards: In accordance with Administrative Measures on Coal Transportation and Delivery and its implementation rules. Parties hereof shall collect valid commercial coal data through data collection in accordance with international standard GB474-1996, GB ###-###-####, GB/T211, GB/T213, GB/T214.

4.

Unit Price for Coal and Validity Term: Due to negotiations by Parties hereof, the base price inclusive of tax is RMB710 per ton with a validity term commencing from 1 January 2010 to 31 December 2013. The price during the term should be based on the standard price published by large Mining Bureau in China: if such published standard price for a single month is increased less than 10% compared with that of the last month, the Seller shall not adjust its contract price; if such published standard price is increased or decreased more than 10% compared with that of the last month, then such newly  standard price published by large Mining Bureau in China shall be applicable.

5.

Time and Method for Settlement of Coal Price, Freight and Miscellaneous Charges: Payment shall be effected upon Seller’s delivery after its short journey transportation.

6.

Breach of Contract: In case any breach of contract occurs, it shall be settled in accordance with the Contract Law; and neither party shall be liable for breach of contract arising from any Force Majeure.

7.

Settlement of Dispute: in case that the Buyer finds any shortage, quality dispute or other abnormal situations in the inspection & acceptance procedure, the Buyer shall, within 48 hours upon receipt of the coal, notify the Seller not to unload the coal or store the coal in a separate place; then Parties hereof shall negotiate to settle such dispute in accordance with related national standard as stipulated by GB/ ###-###-####; or Parties hereof may conduct laboratory test together and make test results as the settlement foundation or entrust an independent third party to conduct laboratory test and make test results as the  settlement foundation; otherwise, it shall be considered as that the Buyer puts forward no objection.

8.

Others: (1). the quantity measurement shall be in line with the mine field’s data ; if the Buyer intends to check whether there is any shortage in quantity, the Buyer shall use a track scale with qualified certificate to measure or data otherwise obtained is invalid.  It shall be considered as occurrence of shortage if the Buyer’s inspection settlement quantity is less than the Seller’s settlement quantity, based on the formula: inspection settlement quantity = {actual quantity * (100-inspection water content)/(100-settlement water content) }+Seller’s sent-out quantity * 1.2%.

Seller

Buyer

 

Location: Anyang City

 

Legal Representative: /s/ Niu Zhi Qiang

 

Telephone:

 

P.O. Box:

Company Name: Henan Shuncheng Group Coal Coke Co., Ltd

 

Location: Industry Road, Tongye Town

 

Legal Representative: /s/ Wang Cun Guo

 

Telephone ###-###-####

 

P.O. Box: