Hammer Oil Company Limited

529 Seven Sisters Road

London N15 6EP UK

Registered in England Registered No. 6654807

Telephone: +44 07531458365

Fax : 1-801-849-4020

Email: hammeroilcompany@yahoo.com

LETTER OF INTENT TO SUPPLY  

Date:  March  2009

To:      Buyers / buyers Mandates / Facilitators   

Please accept our exclusive Letter of Intent for the supply of our products.

(Brief description of product)

SOFT OFFER : D2 - DIESEL OIL Spot / Contract  Available for Purchase

Description:    CIF / FOB

Location:  

Asking Price:   Spot Price/ MT  $   / $             

I confirm with full responsibility that I am ready to move forward with this transaction and I confirm that I have voluntarily initiated this request and further confirm that I have not been solicited by you or any of your affiliates, agents or otherwise and we submit this Letter of Intent of our own volition. I, also, understand the need for confidentiality and non-disclosure of names and details of the transaction as made known.

By my execution of this Letter of Intent, I affirm that I am the sole signatory for the proposed transaction; also, I am fully authorized to execute this document and all agreements, as required, to proceed with the transaction and have the funds to start this transaction.

 Commodity: D2 , JP54 , M100 , LPG , LNG  , REBCO,  BLCO , UREA

Origin: Russia

Quantity:

Price: USD          gross per MT / USD   net per MT – Spot

FOB Houston / Rotterdam

Commissions: USD 50%  (USD 00.00 sellers side[closed) USD50% buyers side

PROCEDURE:

1. Buyer issues ICPO / LOI , with right to soft probe

2. Refinery issues FCO

3. Buyer signs and returns FCO with a letter of acceptance.

4. Refinery issues draft contract open for amendments.

5. Buyer returns signed draft contract:

      a. Refinery issues partial Proof Of Product (POP)

      b. Buyer issues Proof of Funds (POF) from prime bank subject to SELLER'S   approval.

6. Refinery issues original contract for final signatory, both parties exchange hard copy of contract via courier within 5 (five) days of signing electronic version. Both parties lodge contracts in respective banks.

7. Buyer's bank issues MT103 or RDLC from a prime world bank against transfer of Title.

8. Refinery issues 2% PB to activate buyer's MT103 or RDLC as agreed on contract.

9. Delivery commence as scheduled.