Dear Sir/Madam Since the information you provided is not enough based the contract (Rev.

B) and minutes of meeting (MOM according to the meeting in 19th April 2011), the following remind are for MOM and the comments are left for the contract. Although we strongly requested from FLS to reply to each of the comments individually in a comment sheet, unfortunately we didnt receive any of that yet. Please kindly leave your reply for each comment individually. 1. For Thickener System: On Minutes of meeting (MOM): 1. Based on the article A7 of agreed minutes, FLSmidth Company shall leave his comments on the project general arrangement document Preliminary General Arrangement Plan Doc. No. 34-EN-PR-GAR-001 for thickener system as soon as possible. Also he shall provide total static (Not only the weight of tank but also weight of components and total weight of equipment) and dynamic loads of Thickener for foundation and structural design. Certified GAs have been provided with load information. [FST]: Its accepted. 2. Based on the article A9 of agreed minutes, FLSmidth Company shall provide a list of his sub-supplier for main components of Thickener. This can only happen after procurement. [FST]: Its accepted. 3. Based on the article B1 of agreed minutes, FLSmidth Company shall provide a list of Instruments of thickener in which he cannot supply it (If any). There are no instruments within our scope that cannot be provided. This would refer to nucleonic density gauges for example where export of a radioactive source would have to be avoided. [FST]: Its accepted.

4. Based on the article B4 of agreed minutes, FLSmidth Company shall provide a list of advantages of using Motor Gear Box instead of hydraulic one in thickener system. Essentially the standard motor gear unit for the thickener is a well proven unit with thousands of field references, all with long operating life. The design is simple and easy to maintain and the components are easily supplied and replaced. The rugged design of the gearbox makes it ideal for supply to areas where back up service is not readily available. [FST]: Its accepted.

On Annex 2B of the Contract:

5. FLSmidth Company shall provide a complete list of components for Thickener package including their type. This can only be done after procurement. [FST]: Its accepted.

6. Drawing No. 574677 is not received yet. Please send it (again) as soon as possible. ( This drawing is not applicable to the ThickenerIt is for the Filter Press system) [FST]: Its accepted.

7. In drawing No. WGD10911 of general arrangement of thickener Design peak torque of thickener is mentioned 80 kNm which are different with those you entered in process datasheet (54kNm for Max. allowable rake drive torque) of the Thickener and also an existing thickener with the same process and geometrical specification (for around 30 years ago) which is exist in the current plant (for 115,205 kNm for Max. allowable rake drive torque). Such difference is exist for some other data which is presented in above mentioned drawing and your filled datasheet (e.g. Rake Drive Motor: 4KW in your drawing and 5.5kW in your datasheet). Please check it and explain us about such ambiguity. During the initial sales stage of the project we entered 5.5kW as an approximate value. When doing the more detailed appraisal after the order we determined that 4.0kW would be used. With respect to the torque the 51kNm figure is erroneous and the 81kNm figure is correct for the duty rated torque. The max. allowable torque would be termed the momentary peak torque by FLS and this is the highest instantaneous figure at which the drive will not fail. For this drive the actual figure is 158 kNm. [FST]: Its accepted. 8. On Annex 2A of the Contract 9. Based on the article A7 of agreed minutes, FLSmidth agreed to review the latest revision of the issued documents including: PFD, P & ID, General Arrangement, Specifications, Data Sheets, Material Requisition, etc. for the thickener system and declare their Probable deviations and if there any non practical points FLSmidth. Please supply the latest revisions of these documents for our review. [FST]: Latest revision of each document will be sent for you for further peer review.

On Annex 3 of the Contract 10. The time given by FLSmidth for Performance Test shall be extended from 30 to 36 days. This is due to its deviation with Project scope of work. Please explain the deviation to the scope of work and how it affects FLSmidth. [FST]: we think there might be a misunderstanding. Our main Project scope of work between our client and us was our purpose. BTW, FLSmidth shall consider this change and its effects. The above refers to days, but it should be months!

It is agreed in the contract that our time for performance is to take place within 30 months of the effective date. 11. The time given by FLSmidth for Performance Test after shipment shall be extended from 9 to 18 months. Please explain the deviation to the scope of work and how it affects FLSmidth. [FST]: See above response. It is agreed in the contract that our time for the Performance Test is to take place within 9 months after last major shipment.

Other comments: 12. Please kindly let us know which type of slurry pump shall be used for pumping the outlet of thickener system (i.e. Centrifugal, Diaphragm type, etc.). It depends on the control strategy of the thickener. If a small continuous flow is to be removed from the thickener then a peristaltic type pump (Bredell or equivalent) would be advisable. If the intent is to have intermittent higher flow then a centrifugal pump could be selected. When making the choice the suction and discharge line sizes and layouts need to be considered in order that settling in the pipe work is eliminated in the case of pump shut down. [FST]: As you know the thickener system process and requirements in this project, please kindly advise us. It should be remind that we have a continuous flow from the outlet of thickener. A small Peristaltic pump should be used

13. FLS shall provide the detail of internal lining for thickener including material, weight, surface area, etc. The mechanism is rubber covered with 6mm thick CHEMOLINE 4B Bromobutyl rubber for protection against wear. It is the tank suppliers choice whether to follow this as the tank is static and therefore not susceptible to as much wear. At present we are not aware of any significant corrosion issues and therefore this has not been considered in our selection. Please advise if this is not your understanding. [FST]: Since the design of tank and any other appurtenances related to the tank is on your scope of work, the detail design of tank and lining including all construction drawing, materials, etc. shall be provided by Vendor. From the information that we have we do not believe it is necessary to line the tank. Do you still want us to show the specification and show Rubber Lining on a drawing? 2. For Filter Press System: On minutes of meeting (MOM): 1. Based on the article A7 of agreed minutes, FLSmidth Company shall leave his comments on the project general arrangement document Preliminary General

Arrangement Plan Doc. No. 34-EN-PR-GAR-001 for filter press system as soon as possible. Also he shall provide dynamic loads of Filter Press for foundation and structural design. Certified G.A. drawings with loads have been supplied. [FST]: Its accepted. 2. Based on the article A9 of agreed minutes, FLSmidth Company shall provide a list of his sub-supplier for main components of Filter Press (such as compressor). This can only be done after procurement is completed. [FST]: Its accepted.

3. Based on the article B1 of agreed minutes, FLSmidth Company shall provide a list of Instruments of Filter press in which he cannot supply it (If any). There are no instruments within our scope that cannot be provided. This would refer to nucleonic density gauges for example where export of a radioactive source would have to be avoided. [FST]: Its accepted.

4. Based on the article C3 of agreed minutes, FLSmidth Company shall quote on Siemens S7-400 Control system optionally. We have not been able to locate a supplier of Siemens equipment prepared to supply to Iran. The Filter Press panels will have a common programming language to the Siemens equipment [FST]: As mentioned before, filter press control system shall be Siemens S7-400 and it is in your scope of supply as package vendor. So, you may prepare Siemens S7-400 Control system from suppliers in or out of Iran. We will continue to investigate the supply of Siemens S7-400 5. Based on the article C4 of agreed minutes, FLSmidth Company shall provide his suggest on Online Moisture Analyzer in the outlet of Filter press. Moistscan use microwave technology and report suitability on mining concentrates and filter cakes, see http://www.callidan.com/ ; They are based in Australia so should be able to supply to Iran. [FST]: Its accepted.

6. Based on the article C7 of agreed minutes, FLSmidth Company shall provide working temperature of filter press and its appurtenances. Also He shall specify whether Hydraulic Oil Heater/Cooler is required or not. Answer to follow. [FST]: Its accepted.

On Annex 2B of Contract:

7. FLSmidth Company shall provide a complete list of components for Filter Press package including their type (such as drive motor, etc.). See answer above. [FST]: Its accepted.

8. Drawing No. 574677 is not received yet. Please send it (again) as soon as possible. The drawing is now attached [FST]: Its accepted.

9. Based on the agreed minutes (MOM), article C7, FLSmidth Company shall consider the instrumentation air consumption of 75 SCFM and plant air consumption of 200 SCFM excluding any over deign factors in its quote as soon as possible. We will provide an updated quote shortly. [FST]: Its accepted.

On Annex 2A of Contract 10. Based on the article A7 of agreed minutes, FLSmidth agreed to review the latest revision of the issued documents including: PFD, P & ID, General Arrangement, Specifications, Data Sheets, Material Requisition, etc. for the thickener system and declare their Probable deviations and if there any non practical points FLSmidth. Please send us the latest revisions for review. [FST]: Latest revision of each document will be sent for you for further peer review.

On Annex 3 of Contract 14. The time given by FLSmidth for Performance Test shall be extended from 30 to 36 days. This is due to its deviation with Project scope of work. Please explain the deviation to the scope of work and how it affects FLSmidth. [FST]: See above response. The above refers to days, but it should be months! It is agreed in the contract that our time for performance is to take place within 30 months of the effective date.

15. The time given by FLSmidth for Performance Test after shipment shall be extended from 9 to 18 months. Please explain the deviation to the scope of work and how it affects FLSmidth. [FST]: See above response. It is agreed in the contract that our time for the Performance Test is to take place within 9 months after last major shipment.

Previously requested information By FLS: 11. The buffer tank process requirements and its instruments shall be provided by Vendor. Flow and density meters for filter feed are required too. This is not within the scope of the contract. [FST]: Its accepted.

12. Filtrate discharge flow and density measurement systems are required. This is impractical as there should be no perceptible density to the filtrate. After the initial fill of the press the filtrate flow will match the feed flow until the blow phase of the cycle. If necessary the flow rate could be monitored by a magnetic flow meter on a vertical leg of filtrate pipe with upward flow. [FST]: Magnetic flow meter in a proper installation is accepted. Also about Density meter, it is bolded by client to use this instrument to monitor discharge density. So, it is necessary to prepare this item by package vendor. Density MeterThis is not included in our supply, because we cannot supply radioactive sources to Iran 13. Standby pump and motor are required. For the Hydraulic oil heater and Hydraulic oil cooler, kindly let us know about your technical suggestion whether they are necessary or not please. This is an operational decision but on the shelf spares would seem a reasonable compromise to avoid making the hydraulic pack too crowded and more difficult to work on. [FST]: So please supply it. OK, we will

14. Please specify the minimum allowable temperature for the equipment. We would suggest the filters are not operated below a working temperature of 8 degrees Celsius to avoid cracking of the polypropylene plates which become brittle when very cold. [FST]: Its accepted.

15. Vendor shall provide a reference list of companies which currently use the recessed plate technology in their molybdenum industry. The vendor shall also provide a list of advantages of recessed plate over membrane type one. The vendor shall guarantee the works to be done with recessed plate too. To follow. [FST]: Its accepted.

16. The vendor shall provide detail of operation voltage and control voltage. Circuit diagram, electrical Load List, Electrical Panel Equipment (SwitchGear) Technical Specification, Cable Plan, and Terminal Plan shall also be provided by Vendor. The

cabling other than directly on the filter is not in our scope and neither is the design thereof. The voltages are provided to us by the client and we are using 400V/50Hz/3ph [FST]: Motor controls 230 V, 50 Hz Aux. voltage control of VSD, Intelligent motor starters and Soft starters 24VDC, UPS.

17. All spare parts shall be provided by FLS as per material requisition of filter press. Also FLS shall provide any other spare parts which are not listed in our material requisition. We can supply whichever spares are required and have quoted as per the appendices to the contract. As yet we have not had an order for any spares. [FST]: Its accepted.

Other comment 18. Please kindly let us know if your filter presses have any ability of rewashing of cake or not. If Yes, Please quote on it separately. Answer to follow [FST]: Its accepted. 19. The services of supervision, start-up and staff training shall be quoted in your offer. We have said that supervisory services can be made available subject to a separate order for the required amount at the prevailing day rate at the time. [FST]: Its accepted. 20. Please confirm with details indicating weight (kg or ton), how long each batch takes, how many batches per hour! Each cycle will take slightly less than 30 minutes and produce approximately 1.25 1.3T of dry solids presented as cake containing 11.5% moisture. There will be approximately two batches per hour so the presses can each process 2.5T 2.6T per hour of dry solids. [FST]: Its accepted. 21. As mentioned before 1st density meters on inlet slurry line shall be radiometric (Caesium-137) type (like FMG or FHG series in Endress+Hauser products). The second one on filtered water can be other type like vibronic type. (FTL or FML series in Endress+Hauser products). Also, Vendor shall prepare mass flow meter and proper control valves on air and water inlet line. Also pressure transmitters on these lines are necessary. Vendor shall prepare Moisture analyzer on outgoing chute. At least Basic information of these instruments shall be presented. FLS are not providing density meters within our scope. All valves and instruments have been clearly identified in the annexes to the contract. [FST]: All of these items shall be prepared by package vendor. Valves and Instruments are being supplied as shown on drawing574677 Radioactive Instruments are not in our scope of supply

22. Two specifications will be sent: 1. SPECIFICATION FOR PACKAGE INSTRUMENTATION and 2. SPECIFICATION FOR JUNCTION BOXES AND LOCAL PANEL. Vendors PLC shall be able to receive command from main control system and send data to main control system via profibus. Filter press package PLC programming (PCS7 and WinCC) and its modification in main control system are in vendor scope of supply. We will not be modifying the main control system within our scope, it will be provision of local panel only. [FST]: All of these items shall be prepared by package vendor. Modifications to the main control system (DCS) is a site activity, which is outside of our scope of supply.

Attn: Jack Avory (FLSmidth Minerals) FLS New Comments and FST replies a) Our GA drawing, which you have approved, shows (although very small) that the overflow launders are of the upflow design. We have noticed that your client document No 34-EN-PR-DSH-001 sheet 8 states the following; Overflow Launder; Weir shall be V-Notch and their position shall be adjustable. As the drawing has been approved could you please confirm if you still require the adjustable V-Notches ( the GA drawing is attached for your reference) [FST]: As FLS recommends upflow launders, we previously confirmed it. However FLS shall use latest technology for the process and mechanical design of its equipment such as launders. We confirm that we will issue the tank drawing showing the up-flow design. b) We have noticed that your client document No 34-EN-PR-DSH-001 sheet 7 states the following; Maintenance; Required provision shall be considered for maintenance lifting provisions on the bridge. We advise that, as indicated on the GA drawing, lifting provision is not necessary. [FST]: We think that there might be a misunderstanding of lifting provisions. For any possible maintenance of thickener bridge, center shaft, rake, etc. lifting provisions shall be supplied. Furthermore, we couldnt find any guideline to indicate that lifting provisions is not necessary. Please advise us if we had any misunderstanding. Lifting of the equipment you mention above can easily be carried by a small mobile crane c) Rubber Covered Rake Arms To avoid wear around the rake arm joints (as shown in the GA drawing) we now propose to make the rake arms and lower centre shaft in one piece. This will ensure that all the surfaces of the Rake Arms that are in contact with the sludge bed are rubber covered. Please confirm your acceptance so that manufacture can commence. [FST]: Please kindly provide us any information regarding any possible disadvantages of this one-piece combination. Also provide sufficient information on other method of avoiding wear if any. There are no disadvantages with the one piece Rake Arm. There is not a better way to avoid the wear on Rake Arm joints

FST Additional Comments: We may want to change the orientation of Overflow/under flow Nozzles. Does it make any changes to your design? If so, we can send you the orientation. It will only make a difference to the detail manufacturing drawings we are providing, so please send the orientations as soon as possible so that we can complete the drawings.