Dear Sirs,

Splav ltd. is a technology company based in Moscow Russia. Formed in 2006 with both private and public funding the company has developed a non-invasive method to monitor in real time basic technological parameters in the EAF and BOF processes of steel manufacturers.

The Technology has been tested in the steel industry in Japan, Europe, Israel and the United States. Beta site testing was completed and the firm is currently marketing its system through a network of engineering specialist companies.

Our company would like to offer you the introduction of monitoring systems and management of technological process of metal melting in real time mode. This method would resolve a row of technical problems connected with economy of materials and powering resources in metal manufacturing.

Acoustic system, Accusteel is intended for the control and management of a course of technological processes of melting steel in electroarc furnaces and converters. As a result the noise that occurs during the process would provide us information in real time (graphic), and a digital form about thermal, chemical processes in a bath of the steel-smelting unit would appear. At the heart of the algorithm computer system physical representations of distribution of acoustic indignations created by a stream of plasma or a stream of an oxidizer are used.

The system working in real time reflects any technological operations made in the course of the technological process. The information recorded on the computer allows us to analyze technological processes, to see lacks which could not be supervised - which will lead to improvement of the technological process.

To carry out the comparative analysis of the statistical results and correlation analysis of measurements for technological indicators of fusion, by means of our systems and devices which carry out the control of technological process with the data, defined by acoustic system Accusteel.

This method is patented in the Russian Federation and in the USA. From experience the introduction of the acoustic system on one of the American steel firms (Arkansas Steel USA), on furnaces of 150 tons, the installation of our system has allowed Arkansas Steel to increase manufacturing of metal up to 30 %.

I have attached more information about our system. I will be pleased to set up a conference call to discuss more about the organisation and your business offering and to establish whether there is an appetite to work together.

Since we have good communications with metal works we have quotas for export from Russia. We can send following kinds metal production:

Low carbon

a. fiber - 2 kinds.

b. Wires - 16 kinds

High carbon

a. Ropes - 94 kinds

b. Wires - 36 kinds

c. Hire of automatic steel with special furnishes.

d. Cold-drawn hires of steel for bearings.

e. Cold-drawn hire of steel under cold disembarkation in hanks.

f. Cold-drawn hire of spring steel.

Kind regards,

Following a call, perhaps we could arrange to meet if we feel there is an opportunity to progress.

Kind regards,

Abaev Iakov

General Manager