CONTRACT No. COAL-369June 21, 2010The firm Crystall Fluorite Mongolia LLC, hereinafter referred to as the Seller, on the one hand, and “ORIENT (HONG KONG) GROUP CO. LTD”, Hong Kong, China, hereinafter referred to as the Buyer, on the other hand, have drafted and concluded the present Contract (The Contract) as follows:1. SUBJECT OF THE CONTRACT1.1.The Seller has sold and the Buyer has bought 600000 metric tons +40% in Sellers option of coking coal in bulk shipped by trucks produced by the “Tavan Tolgoi” Joint-Stock Company, Mongolia, hereinafter referred to as the “Goods”, on the terms DAF Gants Mod border station according to the following contract specification:MOISTURE as received, %ASH on air dry basis, % SULPHUR on air dry basis, % VOLATILE on dry ash free basis, % PLASTOMETER INDEX “Y”G INDEX (G)ROGA INDEX (RI)CALORIFIC VALUE NET, kcal/kgSIZEMAX 3,0MAX 12,0MAX 0,8MAX 27MIN 15 MMMIN 80MIN 70MIN 62000-300 MMQuality of the Goods must be confirmed by certificates of quality issued by Independent Laboratory (Mining Institute) at the Loading Station and Independent Laboratory (CIQ, etc.) at the Discharging station.2. PRICE OF THE GOODS AND PERIOD OF DELIVERY2.1. The price of the Goods is US dollars per metric ton on DAF Gants Mod border station according with Incoterms 2000 (ICC publication No. 600) should be in Addendums to The Contract. Price should be confirmed every three months by The Parties and indicated in Addendums to The Contract.Final quantity settlement will be basis of customs scales from Gants Mod border station, and final quality settlement will be basis of Independent Laboratory (CIQ, etc) from Gants Mod border station.In case the results of the Certificate of Quality at the Loading/Discharging station fall outside the specification limits as per clause 1 of the present contract the following adjustments will be applied on DAF price:A) Ash: Should the ash content on air dry basis exceed 12,0% up to 16,0% then the DAF price per metric ton shall be reduced by USD 0,5 Per MT for every 1,0% above 12,0% with fraction pro rata. Should the ash content on air dry basis exceed 16,0% up to 23,0% then the DAF price per metric ton shall be reduced by USD 2,0 Per MT for every 1,0% above 16,0% with fraction pro rata. Should the ash content on air dry basis exceed 23,0% then rejection of The Goods.B) Sulphur: Should the Sulphur content on air dry basis exceed 0,8% then the DAF price per metric ton shall be reduced by USD 0,3 Per MT for every 0,1% above 0,8% with fraction pro rata.C) Volatile Matter: Should the Volatile Matter content on dry ash free basis exceed 27% up to 30% then the DAF price per metric ton shall be reduced by USD 0,8 Per MT for every 1,0% above 27% with fraction Pro rata. Should the Volatile Matter content on dry ash free basis exceed 30% up to 35% then the DAF price per metric ton shall be reduced by USD 2,0 Per MT for every 1,0% above 30% with fraction Pro rata. Should the Volatile Matter content on dry ash free basis exceed 35% then rejection of The Goods.D) Plastometer Index Y: Should the content of Plastometer Index Y below 15 mm up to 13 mm then the DAF price per metric ton shall be reduced by USD 1,0 per MT for every 1 mm with fraction pro rata. Should the content of Plastometer Index Y below 13 mm up to 10 mm then the DAF price per metric ton shall be reduced by USD 2,0 per MT for every 1 mm with fraction pro rata. Should the content of Plastometer Index Y below 10 mm then rejection of The Goods.E）G INDEX (G)：Should the G Index G below 80 up to 70 then the DAF price per metric ton shall be reduced by USD 0,5 per MT for every 1 point with fraction pro rata. Should the content of G index G below 70 then rejection of the Goods.In case months plan of delivering The Goods will be non-fulfilled by Sellers, The Seller must pay penalty to The Buyer according to the next formula:If non-delivered quantity of The Goods is from 1 mt up to 5000 mt then:Penalty=(50000-delivered volume)*1,0USDIf non-delivered quantity of The Goods is from 5001 mt up to 10000 mt then:Penalty=(50000-delivered volume)*2,0USDIf non-delivered quantity of The Goods is from 10001 mt up to 20000 mt then:Penalty=(50000-delivered volume)*3,0USDIf non-delivered quantity of The Goods is more than 20000 mt then:Penalty=(50000-delivered volume)*5,0USD and The Contract is canceled.Penalty must be paid by T/T by The Seller in accordance with Buyers invoice within three working days after receiving invoice by e-mail or fax.In case complicated weather conditions (heavy rain or heavy snow) which were cause of non-fulfillment of months plan of delivering of The Goods Penalty will not be applied. Such weather conditions should be confirmed by the certificate from meteorological agency of Mongolia issued in English. The Seller must send this certificate to The Buyer by e-mail within one working days after receiving certificate