DSG COAL PRESENTATION

DSG COMMODITIES GROUP OF NEW YORK, NEW YORK 1

VIA DSG COMMODITIES GROUP

44 WALL STREET

12TH

Floor

new york, new york 10005

• We set up Coal Trade Indonesia after completing a highly through examination of market demands for the International markets.

• CTI has a strategic partner of DSG Commodities Group & PT Trimukti Ajipratama and focusing on International Marketing

• We aim to provide a service to the buyer and miner here in Indonesia that are second to none.

• We have full Mine to mother Vessel Coal Monitoring System (M2V-CMS) , we follow the coal till it is on board the MV to ensure Logistics & Quality

• We are straight talking, do not go around in circles, ask a question and we will answer directly.

• Our aim is to join the end user directly with the mine wherever possible, cutting out what can be a host of middle men and dealers.

• We sign direct mandates with the mines and all our fees are included within the price offered.

• Our team is made up of highly qualified management professionals with a long successful track record, we also have a team of experienced coal mine professionals who have been in the Indonesian coal mining business for many years.

• We checkout all mining operations 1st hand by visiting the mines and check the mines paperwork etc before we will offer their coal for sale through Coal Trade Indonesia.

• Our International Legal Team is very experienced and seasoned with International Trade Law guidelines.

• We also arrange Joint projects in coal mining, from simple funding through to complete mine takeover.


Coal Trade Indonesia


Direct Management

Brian L. Saulsberry

President / CEO

Mines/Miners

1. PT Trimukti Ajipratama

2. PT Asri Prima

3. PT Erlianti Pratama

4. CV.Karya Bersama

5. CV Berkah Madina

6. CV.Uluguagah

Bankers

1. BANK MANDIRI TBK

2. JP MORGAN CHASE

3. BANK OF AMERICA

4. HSBC

.


Strategic Partners

1. PT Maksima Adijaya Upakara

Mine to Vessel Logistcs

Monitoring System Provider

2. DSG Commodities Group

3 Suria NATAADMADJA &

Associates, Advocates & legal

consultants

4DSG COMMODITIES GROUP

Coal Trade

Indonesia

1. Company Profile 2. Full Corporate Offer (FCO)

• Coal Specification• Capacity Production• Price and Condition• Payment Condition• Independence Inspection• Port Loading/Anchorage Point

3. Draft Contract4. Review LC by Bank5. LC Accepted by Both Parties6. LC Operated 7. Logistic Management monitoring8. Delivery of Coal

1. Letter of Intent •• Speck requirement• Volume per Shipment• Payment Condition• Contract Duration

2. Irrevocable Confirm Purchase Order (ICPO)

3. Draft Contract Accept & Signed4. Issue LC by Buyer Bank5. Within 5 days following the

receipt of LC, PB issue to buyer 6. LC Operated

International Market

Domestic Market


BUYER CTI - MINER

NEGOTIATION PERIODE

BUYER

MINER

1. Request for Offer and Letter of Intent

2. Specification Accepted

3. Price & Conditions4. Draft Contract5. Price, Contract

Accepted

1. Specification and Certificate of Analyze

2. Full Corporate Offer (FCO)

3. Mine Production Capacity

4. Price & Condition Accepted

5. Site Inspection

1. Irrevocable Corporate Purchase Order (ICPO)

2. Contract Signed3. LC Application4. LC Accepted5. Issuing LC6. Issuing Performance

Bond

CONTRACT PERIODE

1.Operated LC

DELIVERING PERIODE

1. Hauling Trucking /Stevedoring

2. Loading –Transshipment

3. Inspection4. Payment to Mine

Contractors

1. Contract Supply Signed

2. LC Operated3. Assigned & Advance

Payment Surveyor /Inspection

4. Assigned M2V CMS5. Packaging6. Certificate of

Analyze report7. Loading to Container

PAYMENT PERIODE

1. LC Bank Collection

1. Pro Forma Invoice2. Packing List3. Certificate of Origin4. Certificate of

Analyze5. Bill of Lading 6. Last Payment to

Mine Contractor

C.T.I

5DSG COMMODITIES GROUP OF NEW YORK, NEW YORK


6

Mining Co BUYER

1 Buyer / Mandate Buyer issue LOI to CTI

2 CTI / Mandate Buyer issue LOI to Miners

3 Miners issue FCO to CTI

4 CTI issue FCO to Buyers

5

6

7

8

Buyer / Mandate Buyer Issue ICPO to CTI

CTI Issue ICPO to MINER

Miners offer Draft S/P /A (Contract) CTI

CTI offer Draft S/P /A (Contract) to Buyer

9 Contract Signed between CTI - Buyer

10 Contract Signed between CTI - Miner

Buyer Issue LC to CTI

CTI issue LC/SKBDN to Miners

Miner Issue I PB to CTI

CTI Issue PB to Buyer

11

12

3

7

4

8

13

14

15

16

CTI Issue Assignment Letter to M2V

11

9

5

1

12

10

8

2

DSG COMMODITIES GROUP OF NEW YORK, NEW YORK


BUYER

OPERATORS

MINERS BANK

SURVEYOR HAULING COSHIPPING CO

M 2 V CMS


1/13/2010 8DSG COMMODITIES GROUP OF NEW YORK, NEW YORK

Mining Co

BUYER

BANK

SURVEYOR

HAULING CO

SHIPPING CO M2V

CMS


1/13/2010 DSG COMMODITIES GROUP OF NEW YORK, NEW YORK 9

M 2 VMine to Vessel

Coal Monitoring System

CoalTrade Indonesia

• Coal Requirement •• Contract •• LC Status •

• Shipping Schedule •• Inspection Report •

• Ex-Im Documents •• BL, CO – COW – COA •

• Coal Specification • Production Capacity• Production Schedule• Hauling Schedule• Stock Pile Info• Loading – Shipping Schedule• Payment Schedule

Type of Information presented by M 2 V- CMS

Mining Company Buyer Company

MINE ROM HAULING STOCK PILE BARGE TRANSSIPMENT VESSEL

Database Coal Minings Database Coal Buyers

MINE ROM HAULING STOCK PILE BARGE TRANSSIPMENT

COAL GETTING

• Overburden• Raw Getting• Raw Loading• Reclamation• Fuel Management• Heavy Equipment

TRANSPORTATION

• Trucking from ROM to Stock Pile Jetty

• Conveyor

PRE LOADING

• Weight Balance• Raw Separation • Crushing• Blending• Washing (If Any)• Stock Management• Pre shipment Doc• Loading to Barge

DOCUMENTS

• Certificate of Origin• Export Document• Certificate of Analyst• Bill of lading

Reporting

Monitoring

Field Activities



11

1. From Overseas buyer by 100% at sight Irrevocable Transferable Letter of Credit 2. For Miners and Shipping Company by ( SKBDN) Local LC OR 3. Partial Payment;

M 2 V

MINE CONTRACTING HAULING STOCKPILE BARGING VESSELTRANSSIPMENT

INDEPENDENCE MONITORING (M2V) - MINER COMPANY (Mc) - INDEPENDENCE SURVEYOR/INSPECTION (ISI)

M c

I S I

50% 50%

50 % 40 % 10 %

50 % 50 %





1. Surveyor Report2. Transshipment Doc3. Bill of Lading (B/L)4. Insurance Document

Surveyor Surveyor/Traders Surveyor/Traders

1. Pre Shipment Report of Analysis

1. Draught Survey2. Certificate of Origin3. Export Document4. Surveyor Report5. BL / Transshipment Doc

Fine Coal

Stockpile

Port of Loading V e s s e lB a r g e s



Port to Port Coal Monitoring System



Mother VesselB a r g e s

Pre Shipment Analyst Rapport• Stock Rapport Certificate• COA• CO/SKAB• Loading Permit

Loading Process1. Cargo / Coal2. Draught Survey3. Certificate of Origin4. Export Document5. Surveyor Report6. BL /Transshipment Doc

1. All Cargo Loading on Mother Vessel

2. B/L Signed by Vessel Captain

14

Transportation / Sailing1. Surveyor Report2. Certificate of Origin3. Transshipment Doc4. Bill of Lading (B/L)5. Insurance Document6. Performa Invoice

15

5 – 7 days

(Loading & Transshipment)

(assumes using 300' Barge)

6 – 10 days

Sailing to

Port

Destination

LOAD ING TO BARGE TRANSSHIPMENTH A U L I N GMINING

6 days

Loading to

Mother Vessel

Needs 10 - 15 days to

reach 50,000 MT

(from single mine)

Up to 38 Days for Production and Hauling 50.000 MT Mine to Port Destination

China and 14 Days LC Collections Total 51 Days



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Port of Loading Port of Un- LoadingB a r g e s V e s s e l

Inspection: @ Jetty

Draught Survey

COW – COA - COQ

For Pre Shipment rapport

Inspection: @ Barge & Mother Vessel

COW – COA – BL – CO

For LC Collection

Inspection: @ Port Discharge

COW – COA – BL – CO

For C.I.Q


1/13/2010 DSG COMMODITIES GROUP OF NEW YORK, NEW YORK 17


Issuing BankAdvising / Negotiating Bank

1.Performa / Invoice

2.Packing List

3.Bill of Lading (BL)

4.Certificate of Origin (CO)

5.Certificate of Weight (CoW)

6. Certificate of Analyst (CoA)

Letter of Credit

BUYERMINER

VESSEL

6 – 10 days Sailing to

Port Destination

1.Document sent by Courier

2.Bank Issuer LC Checking

3.Checking & Correction

4. Amendment / Correction

5. Bank Notification

6. Bank Release Payment

Monitor 150,000 MT

Sept March

Monitor 300,000 MT

Scoping, Competencies

Mapping, Working Schedule

Ju

ne

Monitor 500,000 MT

Monitor 700,000 MT

Monitor 900,000 MT

Monitor 1.000,000 MT

Coal Trade Indonesia 2010

Coal Trade Indonesia Integrated Management – Coordination and Monitoring

A Strategic Division of

DSG COMMODITIES GROUP,

A SUBSIDIARY OF DSG CAPITAL GROUP OF NEW YORK, NEW YORK