Origin

Peru

Dear Sir:

We are a mining company in Peru, and we are seeking a partner willing and able to invest and to construct a railroad (560 Kms train, investment considered in around US$ 2.300 millions) and a sea port (Pacific Ocean), maritime wharf to embark at least 40 million metric ton of iron ores and sponge iron per year or more. This business of railway and ocean port not necessarily needs to be made through a partnership with us (Joint Venture JV), if you decide, you can act independently to apply and win a bidding for a public contract with the Peruvian government, but the idea is that our mining project can help you to win the bidding and of course is a transport service that we need to use for sure, and other mining companies also, and if you want to invest in mining then also we have opportunities available for you (investment in around US$ 300 millions or more).

I am sending you the next news, that appeared in a Peruvian newspaper :

PERUVIAN GOVERNMENT ADMITTED TO STEP PROJECT OF PORT AND TRAIN TO MARCONA in PERU

March of 2009 Gestion newspaper, with this initiative, look for to transport 40 million metric ton of iron from Andahuaylas (Apurimac) to Marcona for their export, proceeding process the private initiative in partnership of Asian companies EMKC - formed by Samsung Heavy Industries Ltd., Posco and Hyndai- for the development of a harbor terminal and the construction of a railroad that will be used in the mineral transport in the south of Peru.

The investment is considered in around US$ 2.300 millions, being US$ 2.000 millions for the railroad, and the difference for the harbor part. observed that, in spite of the crisis, the financing has been a commitment of the companies, reason why considers the project of bimodal transport viable. This Peru Iron is united to the initiative developed by Shougang for the extensions of its port in San Nicholas de Marcona. The railroad will cross about 560 km, between Andahuaylas (Apurimac) and Marcona, and a branch to the Cusco is already contemplated to one second stage, extending.

Through railroad, hope to mobilize 40 million metric tons of iron to the year, although it would have a maximum capacity of 80 million metric tons to the year.