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LETTEROFCREDIT/DOCUMENTARYCREDIT

SWIFTMT720NORMAL

TRANSFERLCNoumber:XXXX

ADERVISINGBANK:XXXBank,PERU

XXXXBANK,PERU

To:xxxx

From:xxxban

DATE:

27:SequenceofTotal

1/2

40AFORM IRREVOCABLEWITHOUTOURCONFIRMATION

20TRANSFERINGBANKREFERENCE:XXX

21DOCUMENTARYLETTERCREDITNO.:XXXXX

31CDATEOFISSUE:XXX

40EAPPLICALERULESUCPLASTESTVESION

31DDATEANDPLACEOFEXPIRY:1204xxx,CHINA

52DISSUINGBANKOFTHEORIGINAL:XXXBANK,CHINA

50FIRSTBENEFICIARY:XXXCOMPANY,HONGKONG

59SECONDBENEFICIARY:XXXXCOMPANY,PERU

32BAMOUNT: CURRENCYUSDAMOUNTx,000,000.00

39ATOLERANCE: +/-10%

41DAVAILABLE WITH.BYANYBANKNEGOTIATION

42CDRAFTSAT: ATSIGHTFOR98%INVOICEVALUE

42ADRAWEE: ISSUINGBANK

43PPARTIALSHIPMENT: NOTALLOWED

43TTRANSSHIPMENT: NOTALLOWED

44ALOADINGAT: XXXPORT,CHILE

44BFORTRANSPORTTO:ANYPORT,CHINA

44CLATESTDATEOFSHIPMENT:40DAYSFROMISSUE

45ADESCR.OFGOODS:Ironorefine

Quantity:50,000MT(10PCTMOREORLESSALLOWED)

Origin:AGENTINA

UnitPrice:USDXXXPERDRYMETRICTONATBASISOFFECONTENTS67%

Specifications:GuaranteedRejection

FE67%BASIS65%REJECTION

AL2O30.60%MAX1.00%

SIO23.50%MAX4.00%

P0.02%MAX0.08%

S0.04%MAX0.08%

TIO20.10%MAX0.20%

Mn0.03%Max

Physicalsize:0.50mm-10mm73%

Below0.5mm20%

Above10mm7%

Freemoisturelossat105oCelsius–8.00%Max;above10%rejection

PRICEITEM:CFRANYPORTINCHINAINTERCOM2000

46ADOCUMENTSREQUIRED:

1.THEPROVISIONALPAYMENTWILLBEPAIDAGAGINSTTHEFOLLOWINGDOCUMENTS

A.SignedProvisionalcommercialinvoicefor100%CFRshipmentvalueinthreeoriginalsandtwocopiesindicatingvalueofgoodsshipped,nameofcarryingvessel,contractnumber,B/Lnumber.

B.3/3fullsetoforiginal“Cleanonboard”BillsofLadingmadeouttoorderandblankendorsed,marked"FreightPrepaid"andnotifyingthepartyasinstructedintheBuyer’sL/C.

C.CertificateofQualityandWeightinthreeoriginalissuedbySGSatloadingport.

D.CertificateofOrigininthreeoriginalissuedbyPERUChamberofCommercewithdetailingloadedquality,commodity,andcarryingvessel’sname.

E.Beneficiary’scertifiedcopyoftelexorfaxdispatchedtotheBuyerwithin24hoursadvisingshipmentdetailsindicatingcontractnumber,nameofcommodity,nameofvessel,B/Lweight,approximateinvoicevalue,sailingdatefromtheloadport,andETAatthedischargingport.

F.PackingListinoneoriginalandtwocopies

SEEFIELD47AITEMFOR2%FINALPAYMENTDETAILS

47AADDITIONALCONDITION

1.THEFIRSTBENEFICIARYREMAININGTHERIGHTTOREFUSEUSTOADVISEALLSUBSEQUENTAMENDMENT(S)RELATEDTOTHEORIGINALLCTOTHESECONDBENEFICAIRY

2.WEWILLFORWARDDOCS,AFTERTHESUBSTITUTIONOFDOCSBYTHEFIRSTBENEFICIRYTOTHEISSUINGBANKFORACCEPTANCEANDPAYMENTWITHOUTREFERINGTOYOUINADVANCE.ONLYUPONRECEIPTOFPAYMENTFROMTHEISSUINGBANK,WESHALLREMITTHEPROCEEDSASINSTRUCTED

3.THESECONDBENEFICIARYORHISBANKERISNOTENTITLEDTOFORWARDDOCUMENTSDIRECTLYTOTHEISSUINGBANKORCONFIRMINGBANKNORREIMBURSEFROMTHEDRAWEEBANKDIRECTLY.WEANDTHEFIRSTBENEFICIARYMAYRESERVETHERIGHTTOCLAIMTHESECONDBENEFICIARYORHISBANKERANYLOSSESWHICHWEORTHEFIRSTBENEFICIARYMAYSUFFERORINCURSHOUDTHEDOCUMENTSBEFORWARD.

LCISSSUINGBANKSTATESTHAT:

ADISCREPANCYHANDINGFEEOFUSD60OREQUIVALENTANDRELEATIVE

CABLEFEEWILLBEDEDUCTEDFROMTHEPROCEEDSFOREACHSETOF

DOCUMENTSPRESENTEDWITHDISCREPANCY.

T/TREIMBURSEMENTNOTALLOWED

+Alldocumentsapplicableshallmentioncontractno.

+Toleranceof+/-10%forbothquantityandamount.

+Presentionperiodforprovisionalpaymentdocsmustbepresented

within10daysafterB/Ldate,butwithinvalidityofthethiscredit.

Finalpaymentsdocsmustbepresentedwithinthevalidityofthe

credit

+ThirdPartyDocumentsacceptable,exceptdraftandinvoice.

+Charter’sB/Lacceptable,whichshouldbeissuedbymasterorowner

ofvessel.

+Priceadjustment:

PriceAdjustmentforFEcontent

Foreach1%Fecontentabove67%,thebasepriceshallbeincreasedbyUSD3.00perdrymetrictonsfractionpro-rate

Foreach1%Fecontentbelow67%,butaboveandincluding65%,thebasepriceshallbedecreasedbyUSD5perdrymetrictons,fractionprorate.

ForFecontentbelow65%,theBuyerhastherighttorejectthecargo.

ForexcessofAl2O3

ForexcessAlumina“Al2O3”attherateofUS$0.10perdrymetrictonsorfractionpro-rateforeach0.1%inexcessof0.60%.IfAl2O3contentisexcessof1.00%,Buyerhastherighttorejectthecargo.

ForSilica(SiO2)

ForexcessSilica“SiO2”attherateofUS$0.10perdrymetrictonsorfractionprorateforeach0.1%inexcessof3.50%.IfSiO2contentisexcessof4.00%,Buyerhastherighttorejectthecargo.

ForPhosphorous(P)

ForexcessPhosphorous“P”attherateofUS$0.10perdrymetrictonsorfractionprorateforeach0.01%inexcessof0.02%.IfPcontentisexcessof0.08%,buyerhastherighttorejectthecargo.

ForSulphur(S)

ForexcessSulphur“S”attherateofUS$0.05perdrymetrictonsorfractionprorateforeach0.01%inexcessof0.04%.IfScontentisexcessof0.08%,buyerhastherighttorejectthecargo.

IffreeMoisturelossat105degreescentigradeexceedstheguaranteedmaximum8%,SellershallmakepaymenttoBuyer,whichisequaltofullactualfreightattributabletoMoistureover8%forfines,andifthemoistureisexceeding10%,theBuyerhastherighttorejectthecargo.

Forthesizedistribution,iftheproportionofthesizeover10mmismorethan7%,thepricewillbedecreasedbyUSD1.00perton,andiftheproportionofthesizeover10mmismorethan10%,thewholecargowillberejected.

+FIANLPAYMENTOFTHEBALANCEOFTHECFRVALUEOFTHECARGOPAYABLEAGAINSTDRAFTATSIGHTACCOMPANIEDDOCSASFOLLOWS

+Signedfinalcommercialinvoiceinoneoriginalandtwocopies,basedoninspectioncertificateofweightandinspectioncertificateof

+qualityissuedbyCIQInspectionCertificateofweightinonecopyissuedbyCIQ.(Photocopyallowed)

+InspectionCertificateofQualityinonecopyissuedbyCIQ.(Photocopyallowed)

+TheappshouldsubmitthecopyoftheCIQinspectionreporttothepaymentbankwithin55workingdaysfromthecompletionofunloadingatdischargeportandmeanwhilefaxthecopytobeneficiary.Andthecopymustbepresentedfornegotiation.IncasetheAPPfailedtoprovidethecopiesoftheCIQinspectionwithin55workingdays,thebeneficiarymaydrawthebalancevalueagainstthefollowingdocuments:

+SIGNEDfinalcommercialinvoiceinoneoriginalandtwocopies,basedoninspectioncertificateofweightandinspec