Top Decision Making

Johnson Walker

President and CEO

North American Minerals

905 48^th Avenue

New York, N. Y. 10159

Tel:(212) 490-2456

Email: Johnsonw@minameri.com

Date: October 8,2001

Young Fan

Young’s Refectory Materials Inc.

No.1, Men’s Avenue, Zhongshan District

Dalian, Liaoning Province

Tel: 0411-286-5151

Email: Youngl@youngrm.com

Re:Bauxite and Magnesite

Dear Mr. Young Fan,

When Mr. Eric H. Williams received your letter bh forwarded your powerfully convinced email to me for my attention. I have regained the confidence toward the china’s refractory market after I read your email. We retreated real estate from that market 50 years ago, it seems that it’s time to go back to the market again on the refractory materials.

Our company is the number one raw material supply for the US steel. We outsource the bauxite and magnesite 1 million tons from Canada, Guyana, Greece which provide us the best materials with the best prices and services. Our customers are comfortable doing the business with those suppliers. We can not afford any failures. We had some test sample bauxite and magnesite materials shipped two months ago and we weredisapointed with the quality of Liaoning Province. We dispatched an engineer last month to Haicheng area in Liaoning province and the test result is still far from satisfactory. I believe China is a great potential market, but it takes time and efforts to tap that market unless China could be more competitive on supplying the qualified bauxite and magnesite to the world market now, i. e. competitive prices, excellent services and qualified materials.

Although we are conservative in outsourcing the raw materials in China, we are still hold a great hope on China’s development. We really hope that we can find a right partner in China and grow together with North American Minerals. I thind Mr. Eric H. Williams would agree with me on this. We would not mind it you could send us some samples, Calcined Bauxite and Dead-Burned Magnesite 92-98 grades from your factory for our test purpose. I would be very happy to learn if you have any users here or any credentials for using your materials over the world.

Looking forward to hearing from you soon.

Johnson Walker

President and CEOCc: Eric H. Williams