Test Result of the Sample

To: Ma Jun

Marketing Manager

From: Eric H. Willias

Purchasing Manager

Date: Deceber 1,2001

Re: Test Result of Magnesite Sample 9010, 9210, 9510 and 9710

Dear Ma Jun:

Taday I’ve received the test result of magnesite samle 9010, 9210, 9510 and 9710. The test results see to be quite better than what we expected and tested fro other Chinese suppliers. I quote you the following lab results.

Quoted

Ref: Dead-Burned Magnesite-Ex China Lot No. Ma Jun 20010909 shipped in on November 17,2001 by UPS.

Testing of the samples at the US Steel Laboratory shows the following results:

MgO:90.90%92.76%95.43%97.21%

SiO_2:4.15%3.78%1.51%0.83%

CaO:2.25%1.89%1.76%1.01%

Al₂O₃:1.89%0.95%0.56%0.36%

Fe₂O₃:0.89%0.88%0.57%0.45%

L.O.I.:0.45%0.23%0.23%0.28%

B.D.:3.15g/cm²3.19g/cm²3.26g/cm² 3.37g/cm²

Size:0-10 mm 90%0-10 mm 89%0-10 mm 92% 0-10 mm 91%

Crystallite size: 10-40 microns 20%10-200 microns 95%

Custoers coent as follows:

1.Crystallize below 40 icrons not usable due to evaporation of the material below this minimum size therefore crystallite ust be above 40 microns and within a “reasonable range”.

2.The narrow range of the sample material MgO is due to the proper burning process at the factory.

3.The elements of SiO₂, Cao, Al₂O₃, Fe₂O₃, are well ranged which eant that the raw materials were fine elected and burning well carried on.

4.Loss on ignition is carefully controlled below the specification.

5.Loss on ignition is carefully controlled below the specification.

6.The distribution of the sizes is good.

Unquoted

Jun, I noticed your last email quotation and I believe your price is not asseptable. Please requote your price based on the FOBST Dalian/Bayuquan each 30,000 MT lot over the 9010,9210,9510 and 9710. Looking forward to your offer.

Best regards,

Eric H. williams Purchasing Manager