Offered On: June 28, 2010
Offer Expires On: July 31, 2010
SOFT OFFER
We, Lanna Resources, Corporation, confirm that we are ready, willing and able to sell
the Grade-A Steam Coal as per the specification and for the price as specified in the
terms and conditions as stated below.
Commodity: Grade A Steam Coal Origin: East Kalimantan
Composition:
Specification (typical analysis)
Inherent Moisture % ± 0.5
Total Moisture % ± 2,9
Analysis Moisture % ± 2,4
Ash content (d.b.) % ±14.1
Volatile Matter (d.b.) % ± 29.1
Fixed Carbon (d.a.b.) % ± 55,0
Chlorine % ±<0,01
Total Sulphur (d.b.) % ± 0,47
Calorific Value MJ/kg ± 32.38MJ/kg or +- 5,800 kcal
Hardgrove Grindability Index ± 48
Moisture
Total Moisture content as on received basis ± 5 % max
Physical composition
+-0 – 50MM
Quantity: Total quantity available of more than 450,000 MT X 12 Months
Minimum Order: 50,000 MT per month; One year contract; Rollover 5 years
Port of Loading: BCT Port, East Kalimantan
LANNA RESOURCES, JL. MADURASA BANGKOK, THAILAND 125375
Email: dr.srihasak@lannar.com
Price:
All prices used in this agreement are in USD. The purchase price of the Coal sold in
terms of this agreement, delivered at X Jetty Bay (USD)
The FOB BCT Port price shall be determined as at the date of opening the Letter of
Credit, thereafter the price shall be determined at the date of delivery loading at X Jetty
Bay (USD), on the Revolving Letter of Credit, Free On Board (FOB) Incoterms 2000.
FOB Price Calculation Example:
This is a high grade of Steam Coal with 5,800 CV (Calorific Value).
FOB price = US $ …..
For CIF Price, add US $... to the FOB price.
Payment Method:
By Fully Funded Letter Of Credit 100% At Sight; Irrevocable, Confirmed, Transferable,
Negotiable, Divisible and Auto revolving; FFDLC – Fully Funded Documentary Letter of
credit.
An international top 50 rated bank or a top five local bank shall issue the said LC.
The Seller shall within 14 (fourteen) banking days after acceptance of the Letter of
Credit by the sellers and suppliers banks, issue through the Seller’s bank to the Buyer, a
performance bond equal to 2% of the estimated contract value of this agreement.
LANNA RESOURCES, JL. MADURASA BANGKOK, THAILAND 125375
Email: dr.srihasak@lannar.com
PROCEDURES
1. The buyer responds to the seller’s soft offer by issuing duly signed ICPO or LOI with
BCL or Soft Probe Authority included.
2. The seller issues draft FCO (Full Corporate Offer) or contract to buyer for comments
and acceptance, the buyer signs and returns the FCO or draft contract showing all
amendments required and adds full banking coordinates as set out within.
3. The seller amends where necessary the hard copy contract, signs, seals and issues to
the buyer for his completion, the buyer signs the hard copy contract and returns it to
the seller. Any facsimile copy or electronically signed copy shall be considered as the
original.
4. Within five (5) international banking days of signing contract buyer instructs its
bank to issue message by Swift to seller’s bank, on a bank to bank basis as per the
sample text supplied by the seller, Issued by a seller acceptable top 50 world bank,
Western European, UK or United States Based or a top-five Chinese bank, in
text/format acceptable to the seller and sellers’ bank.
5. Within five (5) international banking days of receipt of the Swift message per clause
above, buyer’s bank will deliver by Swift said LC to be Authenticated, Verified and
Confirmed, bank to bank.
6. Within five (5) International banking days of the LC being authenticated, verified
and advised to the seller’s account, seller’s bank will issue the required 2%
performance bond, plus separately Proof of Product (POP) by Swift thereafter as
soon as available.
DELIVERY AND SHIPMENT COMMENCE AS PER THE TERMS AND CONDITIONS OF THE
CONTRACT.
We trust you would find this offer for Grade-A Steam Coal in order and hope to receive
the confirmation of the offer at the earliest. If you have questions please do not hesitate
to communicate with us. We look forward to long term cordial business relations for
mutual benefits.
Sincerely,
(signed)
The Seller/Miner’s name
LANNA RESOURCES, JL. MADURASA BANGKOK, THAILAND 125375
Email: dr.srihasak@lannar.com
