Rough Diamonds - SOFT OFFER

                                                   COMMODITY SPECIFICATION

Commodity:        Rough Diamonds

Origin:                Botswana Government

Quantity:             200’000 carats spot with 1 000 000 carats as per attached manifest every month.

Form:                 Rough Diamonds

Contract/Spot:    Contract

Price:                 $2 600 NEG.

Commissions:     3% payable by The BUYER to SELLER attorney who will act as paymaster for commissions

                          SELLER Side – 1.5%

                          BUYER Side – 1.5%

Instrument:          BCL as per Appendix 2 then after SKR ICBPO (MT799) blocked funds

Delivery:             CIF Sellers Brinks Account Geneva, Switzerland Free Trade Zone or as discussed

                          Between Buyer and  Seller

                                                                                                                            

Packing:             Standard International export containers.

QUANTITY

A trial lift of 200 000 carats then 1 000 000 carats as per attached manifest every month for an initial period of 12 months with Rolls & Extensions for 60 months CIF Sellers Brinks Account Geneva, Switzerland  Free Trade Zone or as discussed between Buyer and Seller.

PRICE

$ 2 600 US Dollars per ct

PAYMENT TERMS

1.     Upon approval of the Buyers Gemmologist assay report by the BUYER, the BUYER will issue an instruction to his Bank, to pay via EFT direct into Seller Bank Account the value as per issued manifest.  This payment will take place within 24 (twenty four) hours

PROCEDURE

1)    LOI to be sent from End Buyer with mandate appointment letter and signed NCNDA,        SELLER will then issue fully signed and completed SPA (Sales & Purchase Agreement) for the BUYER’s review and acceptance with 1 (one) – 2 (two) business days of receiving confirmation from the BUYER on acceptance of draft SPA (Sales & Purchase Agreement) and / or LOI (Letter of Intent).

2)     Upon mutual approval of the SPA (Sales & Purchase Agreement) the BUYER will sign the SPA (Sales & Purchase Agreement) and IMFPA (Irrevocable Master Fee Protection Agreement), and return electronically signed copy of this agreement to the SELLER via secure electronic mail. Copy of Buyer’s and Buyer’s Gemmologist’s Passports to accompany SPA. This to be completed within two business days of Buyer accepting the draft SPA

3)     BUYER and SELLER will each lodge their respective SPA’s (Sales & Purchase Agreements) and

       IMFPA (Irrevocable Master Fee Protection Agreement) with their respective Bank Officers within 2 (Two) banking days of signature by both parties.

4)    Within two days of the Buyer lodging the SPA with the Buyers Bank, the Buyer provides the Seller with a BCL (Bank Comfort Letter) MT199 / MT999 for the full value of 1 000 000 carats namely USD 2 600 000 000.0 (two billion six hundred million dollars) as per Appendix 2 as proof of financial capability

5)     Stones moved from mine vault and placed into Brinks in Botswana, 1 000 000 carats (one million carats) every month.

6)    SELLER provides the BUYER with a verifiable SKR as Proof of Product in Brinks Botswana.

7)     Buyer will provide the Sellers Bank with an ICBPO (MT799) Blocked Funds as a Payment Guarantee as per the relevant manifest, 1 000 000 carats every month

8)     After verification of the ICBPO MT799 Blocked Funds, the Diamonds will be moved to Sellers Brinks Account Geneva, Switzerland Free Trade Zone or as discussed between Buyer and Seller

9)     Seller to pay all export expenses in country of origin and Buyer to pay all import expenses in country of import.

10)  SELLER will issue the BUYER and BUYER’S Gemmologist team with invitation letter to view and verify the diamonds at Sellers Brinks Account Antwerp. Verification of parcel to take place at a minimum rate of 50 000 carats per day. (Payments, as shown below in para 12 are to be released on a daily basis after assay).

11)  BUYERS Gemmologist team will issue an assay report on the diamonds according to issued Manifest to both the SELLER and BUYER for approval.

12)  Upon approval of the BUYERS Gemmologist assay report by the BUYER, the BUYER will reseal the parcel of diamonds in his name and issue an instruction to his Bank, to pay via Electronic Funds Transfer direct into Sellers nominated Bank Account the value of the diamonds as per the agreed manifest within 24 hours

13)  Upon verification of BUYERS payment by the SELLER, the SELLER will issue the BUYER with a copy of all export documentation including but not limited to the following:

a.    3 x Commercial Invoices in favour of the BUYER

b.    Kimberly Process Certificates for the manifest

c.    Certificate of Origin

d.    Declaration that the product is free and clear and of non-criminal origin, unencumbered and free of any liens,      

       transferable and exportable.

e.    Export Permit

14)  Ownership of the product will be transferred to the BUYER immediately upon:

a.    Verification of receipt of funds from the BUYER’s Bank by the SELLER’s Bank within 24 (twenty four) hours

b.    Verification of receipt of commissions from the BUYER’s Bank by the assigned paymasters specified in the IMFPA (Irrevocable Master Fee Protection Agreement).

15)  Assigned Paymasters will be responsible for paying any beneficiaries listed in the IMFPA (Irrevocable Master Fee Protection Agreement) within 1 (one) – 2 (two) days as per any conditions outlined in the IMFPA (Irrevocable Master Fee Protection Agreement).

Appendix 1A: Indicative 199 994 carat manifest

Size	Color	Clarity	Amount of Carats	Price Per Carat- FIXED	Total Price
5	D-H	VVS1 – VS2	28902	1599	$46 214 298.00
6	D-H	VVS1 – VS2	26602	1740	$46 287 480.00
7	D-H	VVS1 – VS2	24282	2195	$53 298 990.00
8	D-H	VVS1 – VS2	21982	2298	$50 514 636.00
9	D-H	VVS1 – VS2	19682	3392	$66 761 344.00
10	D-H	VVS1 – VS2	17362	3572	$62 017 064.00
11	D-H	VVS1 – VS2	15062	3592	$54 102 704.00
12	D-H	VVS1 – VS2	12762	5388	$68 761 656.00
13	D-H	VVS1 – VS2	10242	5395	$55 255 590.00
14	D-H	VVS1 – VS2	7942	5395	$42 847 090.00
15	D-H	VVS1 – VS2	5842	6620	$38 674 040.00
16	D-H	VVS1 – VS2	3922	6672	$26 167 584.00
17	D-H	VVS1 – VS2	2422	6698	$16 222 556.00
18	D-H	VVS1 – VS2	1202	6715	$8 071 430.00
19	D-H	VVS1 – VS2	902	7191	$6 486 282.00
20	D-H	VVS1 – VS2	602	7240	$4 358 480.00
21	D-H	VVS1 – VS2	282	7905	$2 229 210.00
			199994		$648 270 434.00
				Average Price	$3 241.45
			Average Discounted Price		$2 600.00
			Total Discounted Price		$ 519 984 400.00
			3% Commission		$15 599 532.00
			Total Disc Price plus 3% com		$535 583 932.00

Appendix 1B: Indicative 250,000 carat manifest

Size	Color	Clarity	Amount of Carats	Price Per Carat- FIXED	Total Price
5	D-H	VVS1 – VS2	36125	1599	$57 763 875.00
6	D-H	VVS1 – VS2	33255	1740	$57 863 700.00
7	D-H	VVS1 – VS2	30355	2195	$66 629 225.00
8	D-H	VVS1 – VS2	27475	2298	$63 137 550.00
9	D-H	VVS1 – VS2	24600	3392	$83 443 200.00
10	D-H	VVS1 – VS2	21705	3572	$77 530 260.00
11	D-H	VVS1 – VS2	18830	3592	$67 637 360.00
12	D-H	VVS1 – VS2	15950	5388	$85 938 600.00
13	D-H	VVS1 – VS2	12800	5395	$69 056 000.00
14	D-H	VVS1 – VS2	9930	5395	$53 572 350.00
15	D-H	VVS1 – VS2	7300	6620	$48 326 000.00
16	D-H	VVS1 – VS2	4900	6672	$32 692 800.00
17	D-H	VVS1 – VS2	3030	6698	$20 294 940.00
18	D-H	VVS1 – VS2	1500	6715	$10 072 500.00
19	D-H	VVS1 – VS2	1130	7191	$8 125 830.00
20	D-H	VVS1 – VS2	755	7240	$5 466 200.00
21	D-H	VVS1 – VS2	360	7905	$2 845 800.00
			250000		$810 396 190.00
				Average Price	$3 241.58
			Average Discounted Price		$2 600.00
			Total Discounted Price		$650 0000 000.00
			3% Commission		$19 500 000.00
			Total Disc Price plus 1.5% com		$669 500 000.00