Ingeniero

CONDITIONAL LETTER OF INTENT SUBJECT TO CONTRACT DRAFT FOR DISCUSSION PURPOSES DRAFT DATED: 23th January 2013 BETWEEN: (1) GEOSERVICIOS/QUEBE CORP, compra-venta de todo tipo de minerales metal-licos y nometalicos . Av. Revolucion #1448, Fracc. Mexico C.P. 22830 Ensenada Baja California Mexico. Ing. Jorge de Jesus Zuñiga Santos. (2) Lic. Alejandro Castillo TERMS & CONDITIONS: 1. The Sellerrepresents and warrants that it is the legal and beneficial owner and title holder of the following commodity as per the specification and in the quantity as specified in the terms and conditions as stated below. 2. The Buyer expresses its intention to purchase the following commodity as per the specification and in the quantity as specified in the terms and conditions as stated below. 3. The Producerrepresents and warrants that it was the legal and beneficial producer of the following commodity as per the specification and in the quantity as specified in the terms and conditions as stated below, and that it has appointed the Seller as agent to sell ad market the product. 4. Name of commodities Iron Ore Lump. 5. Quantity. This contract is for 100,000MT +/- 10% at Seller’s option to be shippedbetween 2 vessels. 6. Chemical Composition / Sizing: Fe 62%. Reject 6.00% SiO2 4.00% Reject > 7.00% S 0.05% Reject > 0.14% P 0.08% Reject > 0.20% 7. Laydays: January, 2013. 8. Loading Port:

TPP Terminal, Lazaro Cardenas Port, Mexico. 9. Delivery terms: FOB 10. Pricing: 10.1 Final FOB price will be calculated as follows: FOB = US$80 per dmt. 11. Premium / Penalties 11. For Fe content Lumps Thebase price shall be increased by a single Fe: Price adjustment in USD/DMTU of $2 for each 1% of Fe above the guaranteed Fe content, fraction pro-rata; The base price shall be decreased by a double Fe: Price adjustment in USD/DMTU of $2 for each 1% of Fe below the guaranteed Fe content, fraction pro-rata. 11.2 For other elements: The base price should be decreased by USD1.00/DMT for each 1% of SiO2above 4.50%; The base price should be decreased by USD0.10/DMT for each 1% of Al2O3 above Guaranteed specifications; The base price should be decreased by USD0.25/DMT for each 0.01% of P above Guaranteed specifications. The base price should be decreased by USD0.15/DMT for each 0.01% of S above Guaranteed specifications. 11.3 For sizing: Lumps: The price should be decreased by USD0.75/WMT on anatural basis fraction pro-rata to the quantities of material above 75.00mm in excess of 5%; The price should be decreased by USD0.75/WMT on a natural basis fraction pro-rata to the quantities of material below 3.00mm in excess of 10%. 12. Payment terms: At sight DLC 95/5 13. Performance Bond: Seller shall open an irrevocable 2% contract value performance bond to buyer within 5 working days aftersigning of the contract and the PB terms and conditions must be accepted by the buyer. 17.2 Weighing at Discharge Port (CIF); At the Discharge Port the Buyer, at the Buyer's expense, shall arrange for CIQ, or an alternative third party to be mutually agreed upon by Parties, to undertake weighing of the shipment by draft survey. The weight thus determined by CIQ (or the third party) shall be final asto the wet quantity of the

shipment except as otherwise provided for in this provision The dry quantity shall be determined by deducting the free moisture referred to in clause 18.2. from such wet quantity. 17.3 Weight differences If after the determinate in of the weight of a shipment in accordance with clauses 17.1. and 17.2. there are any differences of weight outturns over 0.50% on a wetbasis then the Buyer and the Seller shall consult to settle the difference. If after consultation the difference cannot be reconciled, then the relevant weight shall be determined by averaging the weight determined at the Discharge Port and at the Loading Port. The weight so determined shall be deemed the weight of the shipment. The final weight of a shipment determined in accordance with clause...