1. Q: What a trading platform Far East Material Trading Center Co., Ltd. is?

A: Far East Material Trading Center Co., Ltd. is an e-contract trading platform for continuous spot trading, with the purpose of serving the cable industry and with cable materials and relevant bulk commodities as transaction goods. Website: http://www.cable-ex.com

2. Q: What transaction goods are in the trading center?

A: Listed transaction goods in the trading center are as follows: 8mm copper rod, 3mm copper wire, cathode copper, aluminum, 9.5mm aluminum rod, plastic, natural rubber, 90PVC and LLDPE.

3. Q: What provisions about transaction time in the trading center are?

A: Transaction time lasts from Monday to Friday each week (excluding Chinese statutory holidays). Opening hours: 9:00 am ~ 11:30 am and 1:30 pm ~ 4:00 pm. In the future, 19:30 pm ~ 22:00 pm may be considered as opening hours according to actual situations.

4. Q: What is operation mode for transaction in the trading center?

A: Traders download market analysis software and client-side trading software from the official website of the trading center and install the two softwares. If you have account and password, you can log in and view market information and transactions.

5, Q: What transaction mode is in the trading center?

A: Transaction mode is a transaction based on e-commerce platform. The electronic trading system will match transaction commands from two parties under the principle of price-time priority.

6.  Q: Why should I choose Far East Material Trading Center Co., Ltd. as transaction platform? Compared with other trading centers, what advantages that Far East Material Trading Center Co., Ltd. has?

A: (1) Performance bond system is employed in our trading center. This can not only help you save costs, but also ensure performance capabilities of buyer and seller.

(2) Listed transaction goods in our trading center can meet more actual demands from cable industry as well as demands in investment, value maintenance, production and marketing, etc.

(3) Transaction expenses and delivery fees are much lower than those of other trading centers, so our trading center can help you reduce transaction costs.

(4) The barriers to transaction and delivery are less, so that more small and medium sized manufacturers and distributors can be involved in.

(5) Continuous spot trading is employed in our trading center, truly realizing standardization of spot contract. And transaction prices can reflect actual situations of the market timely.

(6) Daily delivery declaration system is adopted in the trading center, with no-fixed-term delivery employed. A trader can select delivery time based on his/her own needs, so as to facilitate buying and selling between seller and buyer.

(7) Compensation system for delayed delivery is employed in the trading center, and compensation will be given to those traders whose delivery declarations are not matched successfully.

(8) Transaction time is more flexible, and continuous trading mode is employed.

(9) Delivery warehouse is set in industry cluster district to facilitate delivery by enterprises.

Refer to Management Measures for Continuous Spot Trading in China Cable Material Trading Center for the above-mentioned items, specific description and detailed operation rules.

7. Q: What rights does a trader have?

A: (1) Make transactions on the software trading platform offered by our trading center;

(2) Be accessible to such information services offered by our trading center as economic dynamics and market information;

(3) Participate in various promotional activities held by our trading center.

8. Q: What obligations should a trader fulfill?

A: (1) Strictly observe all transaction rules and relevant administrative provisions of our trading center;

(2) Keep your trading account and password safe and confidential;

(3) Observe relevant national laws and regulations;

(4) Fulfill other obligations specified in rules and relevant administrative provisions of our trading center.

9. Q: How much does a performance bond costs for a transaction in the trading center?

A: 20% of the full contract amount.

10. Q: Where to save my funds (deposit), the trading center or a bank?

A: Our trading center has a designated bank that has signed a contract with our trading center (refer to “Settlement bank” on our official website for details about bank and account). The designated bank serves as a settlement bank and to fund supervision. Funds of a trader are credited to the special account that the trader opens in the settlement bank, so that the fund security can be fully guaranteed.

11.  Q: May I pay in US dollars or other foreign currencies?

A: Does the quoted price include taxes? A: Only RMB is accepted in our trading center. Quoted price on the trading system of our trading center refers to price including taxes of products meeting specified requirements that is required at the designated delivery warehouse of our trading center, so all our quoted prices include taxes.

12. Q: What transaction unit is in the trading center?

A: What is the minimal transaction unit? A: In terms of listed commodities, 8mm copper rod has a transaction unit of 1t/shou (in Chinese, one shou = 100 shares of stock) and a minimal delivery unit of 4t; 3mm copper wire has a transaction unit of 1t/shou and a minimal delivery unit of 1t; cathode copper has a transaction unit of 1t/shou and a minimal delivery unit of 5t; aluminum has a transaction unit of 1t/shou and a minimal delivery unit of 5t; 9.5mm aluminum rod has a transaction unit of 1t/shou and a minimal delivery unit of 2t; plastic has a transaction unit of 1t/shou and a minimal delivery unit of 5t; rubber has a transaction unit of 1t/shou and a minimal delivery unit of 5t; 90PVC has a transaction unit of 1t/shou and a minimal delivery unit of 5t; LLDPE has a transaction unit of 1t/shou and a minimal delivery unit of 5t. Please refer to corresponding contract and relevant rules for other commodities listed in the future. The principle in the trading center is that the threshold for transaction and delivery is set reasonably low, so as to facilitate transaction and delivery by more small and medium sized enterprises.

13. Q: How much does a buyer should pay for goods?

A: (Settlement price ± brand premiums / discounts) × tons of delivered commodities

14. Q: In case of floating loss, when should a trader pay additional margin?

A: Daily clearing and monthly settlement system is employed in our trading center. After settlement on each day, if the fund balance of a trader on the day is less than the minimum balance deposit specified by our trading center, our trading center will send a message to the trader and require the trader to pay additional margin.

15. Q: What is the difference between trading volume and order quantity?

A: Trading volume refers to the amount of one listed commodity that was traded on the current day. Order quantity refers to the amount of contract object (listed commodity) that has not been transferred or delivered but has electronic contract already signed.

16. Q: What is the different between final settlement price and closing price?

A: Final settlement price refers to weighted average price of all transaction prices on the current day, while closing prices refers to the transaction price of the last transaction on the current day.

17. Q: How does the trading center ensure that the buyer and the seller perform the contract duly?

A: In our trading center, warehouse receipt guarantee and performance bond system for payment by installment are employed to ensure that the buyer and the seller will perform the contract duly.

18. Q: When a seller can receive all money for sale of goods?

A: After delivery, the seller will receive 80% of payment for goods. If the buyer does not raise written objections about quality within three trading days after goods delivery, the seller will receive the rest of payment for goods.

19. Q: Where is the designated delivery warehouse?

A: Our delivery warehouse is temporarily determined to be set in the Yangtze River Delta Metal Logistics Park and more warehouses will be set in the future according to business needs.

20. Q: Are goods delivered only in the warehouse designated by the trading center?

A: Yes.

21. Q: Who should pay warehouse charges?

A: For 3 trading days after the goods delivery to the designated delivery warehouse, the seller will pay warehouse charges, insurance expenses and other relevant charges. After goods delivery to the buyer, the buyer should pay the above-mentioned charges.

22. Q: Whether commodities traded through the trading center have quality guarantee?

A: Our trading center will carry out inspection for those goods entering delivery flow before warehousing and only goods with inspection results that meet relevant requirements specified by our trading center can be put into the delivery warehouse, so quality of goods can be fully guaranteed.

23. Q: What should a buyer do when he / she finds that goods have quality problems after receiving?

A: If the buyer has any doubts about quality of goods, he / she should inform our trading center in a written form within 3 trading days after the delivery date. Then, our trading center will invite the third-party national quality testing institution designated by our trading center to carry out quality inspection and inspection results will serve as basis used to judge whether the goods are up to standard. If it is found after quality inspection that the goods are not up to standard, the seller will be considered to break the delivery contract and our trading center will take measures according to relevant provisions.

24. Q: In case of major accidents, who should take responsibility and bear loss?

A: In case of losses caused by such force majeure as earthquake, flood, war and strike, our trading center will not take responsibilities. In case of other accidents, our trading center will announce to enter unusual situations and actively take emergency measures to eliminate risk and prevent worse conditions.

Far East Material Trading Center Co., Ltd.

17 December, 2011