Opening an L/C

To: Eric H. Willias

Purchasing Manager

From: Ma Jun

Marketing Manager

Date: December 29,2001

Re: Opening L/C on Magnesite 9010

Dear Eric,

Thanks for your final confirmation and I made the S/C No. NMM06280001. You can download it in Adobe by log in the attachent. For the development of the first lot business, it seems urgent to get the things ready before January 2002, so for the best performance of the deal, please open your L/C by wire in favor of Young’s Refractory Materials Inc. notifying us via Bank of Communications, Dalian, China.

Please also advise me the L/C number at your earliest convenience to enable me arrange the shipment. I’ve instructed our transportation and warehousing department in Bayuquan to fully set up the loading process. Once I get you instruction of your chartering vessel, plese contact our agent, PENAVICO DALIAN, whom I believe is also your shipping agent in Bayuquan, to supervise the loading.

When you countersign the S/C No. NMM06280001, email me back the contract by attachment. The entire terms and conditions of the contract are a sort of restrictive and harsh. Even I think it’s prohibitive and impracticable to perform the contract. So your earliest completion of the L/C shall be highly appreciated.

Best regards,

Ma Jun

Marketing Manager

Young’s Refractory Materials Inc.

Attmt: S/C No. NMM06280001