Letter of Intent - Copper Cathodes

1. Saturday, 2nd June 2012
To: End Sellers
Dear Sirs,
Re: LETTER OF INTRODUCTION - COPPER CATHODE PURCHASE : EX D.R.C. : ZAMBIA :
TANZANIA & SOUTH AFRICA : (BUYERS CODE) :RDK LTD EUROPE: INFORMATION UPDATE FOR
SELLERS & INTRODUCERS: JUNE 2012
Temic Energy Limited is a growing diversified International Commodities Trading Company. The
company trades in various commodities including Crude Oil, Petroleum Products, Metals and Minerals.
The Company represents a Leading European Metals Trading House, with its head office in
Switzerland, wholly owned by a major multinational. Operating through a regional "Joint
Venture" arrangement, we are developing long term supply arrangements for Non LME
Registered Grade A Copper Cathode (Blister and Scrap are also purchased plus ore for our
smelter in the Lubumbashi area). Full transparency is "restricted" until it is certain that we are
engaging with a Bona Fide seller.
The minimum trial quantity purchased is normally 25 / 30 MT approx (one truckload often as a trial
consignment). There is no upper limit. The following information is for guidance. Genuine sellers will
understand that with the current level of fraud within the region the buyers have no option but to exercise
extreme caution with all trial / first consignments. Please address offers to Buyers (code) "RDK Ltd
Europe via Temic Energy Ltd". If the offer is for "physically available" cathodes please enclose a copy
smelters (factory) certificate of assay. If it relates to a "forward allocation" please enclose
confirmation of that allocation. New suppliers may be asked to have their bankers provide a short reference
letter. This does not apply to Recognised end suppliers. The buyers are willing to issue an LOI re credible
offers either direct or through their mandates according to circumstances.
The buyers will only purchase Ex approved warehouse. This can be
(a) Ex any mutually agreed sellers warehouse in the Lubumbashi/ Likasi areas.
(b) Ex Manica warehouse, Kitwe, Zambia the buyers have staff and offices in Kitwe.
(c) Ex K & K Cargo Logistics, Kurasini, Dar es Salaam.
(d) Additional locations at Safmarine Durban & Manica Walvis Bay by arrangement.
(e) Ex certain Smelters own warehouses in DRC and Zambia.
Preliminary inspections can be undertaken at other recognised warehouses only if a warehouse receipt is
provided and can be authenticated. Please be aware that for the completion of any transaction it is
necessary for the cathodes to move to one or other of the above approved warehouses for inspection. In
Lubumbashi the process is controlled by Malabar logistics at any sellers locations that they approve on our
behalf whilst in Kitwe the process will be supervised by our own staff. In Dar es Salaam the verification/
completion process will be supervised by a multinational risk management group on the buyers behalf.
Movement costs can be pre funded where there is credible proof of product / ownership. Transactions will
not be completed in private warehouses.
The buyers are willing to pre fund total movement costs from the point of supply (mine / smelter /
TEMIC ENERGY LIMITED
MIREMA ROAD OFF THIKA ROAD, BEHIND SAFARI PARK HOTEL, NEXT TO USIU
POST OFFICE BOX 22350 - 00400 NAIROBI, KENYA
TEL: +254-729-252856 / +254-722-335410

2. warehouse) to one or other approved warehouse. If required trucking can be arranged. Proof of product
required for pre funding will be smelters documentation to include smelters certificate of analysis (factory
assay certificate). Cathodes can be accepted at buyers approved warehouse to the buyers cost subject to pre
approval.
Following a successful trial consignment the buyers are willing to arrange a bank payment guarantee, if
required, on future consignments. Likewise they are happy to meet with sellers either at their offices in
Kitwe or by arrangement / invitation at the sellers location.
Contracts are normally issued direct from the head office of the metals trading group in Switzerland.
What do we need from sellers to start the process ?
(a) a written offer from the sellers please confirming agreement to the buyers proposed delivery
arrangements. If pre funding or movement costs are required please include detailed cost estimate. In DRC
we need to know precisely where any Cathodes/ Blister is located please.
(b) please enclose with offer the warehouse receipt / proof of product for the consignment being offered.
This should be the smelters/ factory certificate of analysis please. Please note that analysis reports on
samples have no value in this process and are unacceptable.
Why do we need this ?
Bona fide sellers are aware that there is a major problem with fraud in the region. We do not engage unless
credible proof of product is provided. We have found that if a seller can provide smelters documentation
they generally own the cathode or have a bona fide linkage to the end supplier as in the case of a trading
company. If the smelters certificate of analysis (factory assay certificate) cannot be produced for cathodes
we are unlikely to proceed. The current United Nations guidelines on Due Diligence now require all major
buyers to seek verification re sources of minerals from "conflict areas" such as DRC.
What do we offer ?
* the buyers are one of the largest in Europe with head office in Switzerland. We conduct business in a
straightforward fashion only and value both suppliers and introducers.
* following a successful trial consignment we are happy to offer long term contracts for supply and will
negotiate fair prices. This offers a seller, continuity and the financial certainty of dealing with a major
multinational.
We will not ..............
* arrange meetings in DRC or elsewhere without establishing a sellers bona fides and or credible proof of
product. No genuine seller has ever objected to this.
* arrange pre funding for movement costs without (a) a visit, and (b) proof of product (smelters
documents) and ownership which will be authenticated.
We are ..............
* here to complete business and establish long term business partnerships. If there is a particular problem
and a seller is willing to be totally straightforward we shall do our best to work with them to resolve any
issues to enable a successful conclusion. Trading companies often rely on a buyers financial instrument to
move cathodes. We do not issue such instruments on first / trial consignments. However it is a very simple
TEMIC ENERGY LIMITED
MIREMA ROAD OFF THIKA ROAD, BEHIND SAFARI PARK HOTEL, NEXT TO USIU
POST OFFICE BOX 22350 - 00400 NAIROBI, KENYA
TEL: +254-729-252856 / +254-722-335410

3. process to enable successful completion of such a proposal whilst protecting any financial arrangements for
the trading company. Please discuss this with us.
We are aware that cathodes produced within the borders of Zambia are now subject to specific
arrangements for export. These requirements do not present a difficulty.
Payment will be made upon delivery , verification of documents and inspection by Alex Stewart, Knights or
agreed alternative. Transfer of legal title to the cathodes takes place only upon receipt of payment by
sellers. Thus sellers are fully protected.
Commissions will be paid to introducers for the life of any contract to include any rolls and extensions. Fee
/ commission agreements are normally issued at the time of contract and are paid through a swiss trustee.
We do purchase in rsa but only through the approved warehouse location in durban. We are willing to look
at other locations but only where a major warehouse is available which will then be approved by our head
office.
*** IMPORTANT INFORMATION : PLEASE BE AWARE ***
We normally wish to see a SMELTERS Certificate of Assay please. If this is not available then there has to
be a good reason. If we agree to attend a meeting then we ask that the Sellers issue a formal invitation and
list the documents that they agree to produce at that meeting as part of that written invitation please.
We are totally straightforward and extremely easy to deal with if you are willing and able to establish the
credibility of any offer. We offer a long term business relationship and the "financial certainty" of dealing
with a major Multinational Buyer.
Kindly contact the undersigned to set up an introductory teleconference.
We thank you in advance.
Sincerely yours,
For: TEMIC ENERGY LIMITED
Jimmy Kairu
James W. Kairu
Managing Director / Chief Executive Officer
TEMIC ENERGY LIMITED
MIREMA ROAD OFF THIKA ROAD, BEHIND SAFARI PARK HOTEL, NEXT TO USIU
POST OFFICE BOX 22350 - 00400 NAIROBI, KENYA
TEL: +254-729-252856 / +254-722-335410