Cooperation KP IRON ORE - KARNA MINERALS, ENERGY RESOURCES

Cooperation: KP IRON ORE

Payment Method:

Cashier Order

Specification:

EXECUTIVE SUMMARY
IRON ORE at MUSI RAWAS, INA

Location : Musi Rawas, South Sumatera, Indonesia
Total Area : 3,266HA

Exploitation, Transportation and Selling Permit for 1,343 Ha:
No. 545/22/DPE/2005 dated December 27, 2005

Distance from Mining Site to Stock Yard : 1 km
Distance from Stock Yard to Stock Pile at Trans Sumatra Road : 25 km
Distance from Stock Pile to Jetty : 215 km
Depth of Ponton : 270 Feet

Production Capacity : 30,000 MT/mth; upgraded to 50,000 MT/mth
1st Delivery : 2 months after Contract Signing

No Location Width (m2) Thick (m) BD Potential Reserve (Ton)

A. PREMIER IRON ORE
1 Sungai Pinang 24,630.00 9.00 5.2 1,152,684.00
2 Sungai Tandoi Kiri 6,948.00 9.00 5.2 325,166.40
3 Sungai Menalu 1,920.00 6.00 5.2 59,904.00
4 Sungai Suban 4,457.00 2.50 5.2 57,941.00
5 Sungai Padang 686.00 6.00 5.2 21,403.20
1,565.00 6.00 5.2 48,828.00

B. DELUVIAL IRON ORE
1 Sungai Tandoi Kiri 13,370.00 3.00 5.2 208,572.00
14,400.00 3.00 5.2 224,640.00
2 Sungai Tandoi Kanan 9,835.00 3.00 5.2 153,426.00
3 Sungai Pinang Kecil 963.40 3.00 5.2 15,029.04

GRAND TOTAL 78,774.40 2,267,593.64

IRON ORE Reserves (TON)
IRON ORE: PRIMER /DELUVIAL PRIMER DELUVIAL TOTAL
PULAU KIDAK 1.531.400 599.976 2.131.376
JANKAT 129.168 351.000 480.168

TOTAL SUMBER BIJI BESI 1.660.568 950.976 2.611.544

RESULT OF TEST/ANALYSIS (conducted by PT. ZhongYe Mineral Res’)

Total Iron (Tfe) 67,15%
Silicone Dioxide (SiO2) 1,78 %
Aluminium Trioxide (Al2O3) 0,76%
Phospor (P) 0,029 %
Sulfur (S) 0,017 %
Arsenic (As) 0,002 %

THE OFFER:

1. Trading, Price is FOB 65 US$/MT, with 50% Down Payment, could be delivered within 2 months after Signing Agreement and received Down Payment.
2. Partnership, to inject working capital in amount of 600,000 US$ for pre-production phase.

KARNA.RESOURCES@GMAIL.COM

Your inquiry will be recorded in "Member Trade Mail".

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