PHILMINERALS CONST. SUPPLYBN: 1497762

Commodity Note for Commodity Traders and Buyers

Prices of Commodities are market driven (depends on time) and the volatility of petroleum prices and subject to the terms and conditions of a proposed SALE CONTRACT. Prices of commodities and mineral commodities change on a basis and the terms and conditions as a proposed sale transfers the risk profiles of a transaction to either parties. There have been instances in our short past that negotiations for terms and conditions took a long time for both parties so price if discussed at onset would be rendered mooted and invalid. We also don't always have commodities ready for sale as these need to be extracted etc; and buyers don't always have requirements so discussions which have started while we are not ready to sell or buyers does not have a fixed requirement, could not have the same prices when both parties are ready to sign an agreement. As such, we insist on negotiating the terms and conditions without price and other commercial considerations first.