Cotton Western Mining Off Take Contracts

1.2 million dry metric tons of 0~11mm Rio Fox Fines, non-concentrated crude Hematite and Magnetite iron ore: Contract signed with Iron Trading Limited, London, pass through for Guangxi Wanxin Iron and Steel Co. Ltd. Signed July 2005, for shipment in late December 2005 or January 2006.

800,000 dry metric tons of 0~11mm Rio Fox Fines, non-concentrated crude Hematite and Magnetite iron ore: Contract with Guangxi Wanxin Iron and Steel Co., Ltd. verbal agreement, Cotton & Western Mining, Inc. has deferred signing the contract until the mine has made its first shipment for Iron Trading Ltd.

2.1 million Dry Metric Tons of 15~20mm Rio Fox Lump, non-concentrated crude Hematite and Magnetite iron ore: Contract with Shandong Hongda Metallurgic Co., Ltd. Cotton & Western Mining, Inc. has deferred signing the contract until such time as the mine has increased the production capacity.

The Los Pozos Iron Ore Mine will not be into production until the second quarter 2006: Los Pozos will be producing 400,000 metric tons per month, shipping out of the Pacific Ocean Port of Lazaro Cardenas, Mexico. Several steel mills and trading houses have shown a strong interest to sign a long term off-take agreement for all 30,000,000 metric tons. Cotton & Western Mining, Inc. is negotiating with potential buyers and will sign one or more off-take agreements in January 2006.

The Pacific Pearl Iron Ore Lease is a non-producing reserve; Cotton & Western Mining, Inc. has presented the Chemical Analysis to both South Korean and Japanese steel mills. There is some interest from both Countries; however, no serious talks can take place until after the geological survey has been completed.. Currently we know the Pacific Pearl is a large deposit of high grade Hematite and Magnetite but is not possible to estimate the total deposits at this time. Plans to develop the mine are on hold until the total number of metric tons can be proven.  (See Photo Gallery and Chemical Analysis for more detail)