Common use of Quality and Quantity Clause in Contracts

Quality and Quantity. 2.1. The Slag shall be delivered EXW the Site. 2.2. Information on the quality and quantity of the Slag is based at this stage on information given by the SUPPLIER. This Agreement covers the tonnages of the Slag in stock zones I, J, K1, K2 and TAS-GL (a map of the stock zones is attached as Appendix 1 forming an integral part of this Agreement) : This represents at least 4 million dry tons of Slag having the following average analysis (and is attached as Appendix 2 and forming an integral part of this Agreement) : -Co: 1.85% -Cu: 1.39% -Zn: 7.49% The quantity of Slag mentioned in Appendix 2 should be sufficient for the production of Cobalt Alloy containing 5,000 tons of Cobalt per year for a period of 15 years. 2.3. Should the total tonnage of Slag corresponding to the minimal specifications be higher than the total quantities indicated above, the PURCHASER shall have the right of first refusal to buy the excess of the Slag at terms and conditions to be set out. In case GECAMINES wants to utilize other part of the stock than what is defined in Article 2.2, the PURCHASER shall have the right of pre-emption to use it within 3 months after the written notice addressed by GECAMINES to the PURCHASER. The purchase conditions on all or part of that part of the stock shall be negotiated in the event the pre-emption right is used. 2.4. The SUPPLIER has delivered a preliminary map indicating the cobalt contents of the different zones of the Site. Such map is only preliminary, and shall not have any value of evidence with regard to the cobalt content of the Slag in the different zones of the Site. The PURCHASER shall have the right to take samples in order to analyze the cobalt content of the Slag. Should an essential part of the Slag have a cobalt content below the allowed average content, and the J.V. find that the project is not economically viable, according to the feasibility studies, the J.V. shall have the right at its full and independent discretion, to terminate this Agreement by means of a written notice delivered to the SUPPLIER at the latest 6 months after entering into force of this Agreement. 2.5. The SUPPLIER undertakes to sell to the PURCHASER the quantity of Slag needed to produce the Cobalt Alloy as determined annually by the PURCHASER. That annual production shall be realized according to the agreed processing conditions and shall not be superior to 5,000 tons of cobalt contained in the Cobalt Alloy without the approval of the SUPPLIER. Nevertheless, the Slag sale shall not be less than what is needed to produce 4,000 tons of cobalt contained in the Cobalt Alloy. 2.6. The PURCHASER shall, either on its own initiative or at the request of GECAMINES or KCO, organize at least once a year a meeting of these 3 parties in order to analyze the market conditions and coordinate the commercial policies. 2.7. The PURCHASER shall include in the Long Term Cobalt Alloy Sales Agreement to be signed with KCO that: - KCO shall not receive more than 5,000 tons of cobalt per year, with a minimum guaranteed supply of 4,000 tons of cobalt contained in the Cobalt Alloy, according to this Agreement. - In case the PURCHASER, after the building up of the Buffer Stock containing 2,500 tons of Cobalt, produces through the Processing company more than 4,000 tons per year, the quantity exceeding 4,000 tons shall be offered at the KCO market conditions, that shall have the right of first refusal. 2.8. The annual quantity of 5,000 tons of Cobalt mentioned above does not include the quantity comprised in the Buffer Stock and can possibly be revised after negotiation among the Parties, depending among others on the Processing capacities in the Democratic Republic of Congo and/or in Finland as well as on the Cobalt market situation.

Quality and Quantity. 2.1. The Slag shall be delivered EXW the Site. 2.2. Information on the quality and quantity of the Slag is based at this stage on information given by the SUPPLIER. This Agreement covers the tonnages of the Slag in stock zones I, J, K1, K2 and TAS-GL (a map of the stock zones is attached as Appendix 1 forming an integral part of this Agreement) : ): This represents at least 4 million dry tons of Slag having the following average analysis (and is attached as Appendix 2 and forming an integral part of this Agreement) : -Co: 1.85% -Cu: 1.39% -Zn: 7.49% ): The quantity of Slag mentioned in Appendix 2 should be sufficient for the production of Cobalt Alloy containing 5,000 tons of off Cobalt per year for a period of 15 years. 2.3. Should the total tonnage of Slag slag corresponding to the minimal specifications be higher than the total quantities indicated above, the PURCHASER shall have the right of first refusal to buy the excess of the Slag at terms and conditions to be set out. In case GECAMINES wants to utilize other part of the stock than what is defined in Article 2.2, the PURCHASER shall have the right of pre-emption to use it within 3 months after the written notice addressed by GECAMINES to the PURCHASER. The purchase conditions on all or part of that part of the stock shall be negotiated in the event the pre-emption right is used. 2.4. The SUPPLIER has delivered a preliminary map indicating the cobalt contents of the different zones of the Site. Such map is only preliminary, and shall not have any value of evidence with regard to the cobalt content of the Slag in the different zones of the Site. The PURCHASER shall have the right to take samples in order to analyze the cobalt content of the Slag. Should an essential part of the Slag have a cobalt content below the allowed average content, and the J.V. find that the project is not economically viable, according to the feasibility studies, the J.V. shall have the right at its full and independent discretion, to terminate this Agreement by means of a written notice delivered to the SUPPLIER at the latest 6 months after entering into force of this Agreement. 2.5. The SUPPLIER undertakes to sell to the PURCHASER the quantity of Slag needed to produce the Cobalt Alloy as determined annually by the PURCHASER. That annual production shall be realized according to the agreed processing conditions and shall not be superior to 5,000 tons of cobalt contained in the Cobalt Alloy without the approval of the SUPPLIER. Nevertheless, the Slag sale shall not be less than what is needed to produce 4,000 tons of cobalt contained in the Cobalt Alloy. 2.6. The PURCHASER shall, either on its own initiative or at the request of GECAMINES or KCO, organize at least once a year a meeting of these 3 parties in order to analyze the market conditions and coordinate the commercial policies. 2.7. The PURCHASER shall include in the Long Term Cobalt Alloy Sales Agreement to be signed with KCO that: - KCO shall not receive more than 5,000 tons of cobalt per year, with a minimum guaranteed supply of 4,000 tons of cobalt contained in the Cobalt Alloy, according to this Agreement. - In -In case the PURCHASER, after the building up of the Buffer Stock containing 2,500 tons of Cobalt, produces through the Processing company more than 4,000 tons per year, the quantity exceeding 4,000 tons shall be offered at the KCO market conditions, that shall have the right of first refusal. 2.8. The annual quantity of 5,000 tons of Cobalt mentioned above does not include the quantity comprised in the Buffer Stock and can possibly be revised after negotiation among the Parties, depending among others on the Processing capacities in the Democratic Republic of Congo and/or in Finland as well as on the Cobalt market situation.