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MEXICOMININGOPERATIONS

CONFIDENTIAL REPORT
THE FOLLOWING REPORT IS INTENDED SPECIFICIALLY FOR THE PERSON
UPON WHICH IT WAS DELIVERED AND BY OPENING THIS FILE SUCH USAGE IS
SPECIFICALLY RESTRICTED BY THE TERMS AND CONDITIONS SET FORTH BY
NETWORK SCRAP METAL CORPORATION AND THAT YOU HEREBY AGREE AND
SUBJECT YOURSELF TO THOSE TERMS AND CONDITIONS. PHOTOGRAPHS,
PROJECTIONS, REPORTS AND OTHER SUCH INFORMATION IS SPECIFICALLY
COPYRIGHTED TO NETWORK SCRAP METAL CORPORATION, ANY USE IS
HEREBY RESTRICTED AND SUBJECT TO PENALTY DEFINED BY NETWORK
SCRAP METAL CORPORATION.

In 2005, Network Hosts, Inc. was approached to review the port limitations of Brazil and was actively
pursuing port developments for Malaysia Iron Ore mines. It was clearly determined that there would be a
shortfall of iron ore in the market beginning approximately in 2007 and Brazil would not be able to
increase its production to meet those levels. A friend of Sam Miller who was an executive at Boeing had
just returned from a trip in Mexico and mentioned that the iron ore mines in Mexico would like for NHI to
invest in their development. Which NHI actively pursued and started development of the infrastructure.
Having acquired 8 mines under joint development with an additional 8 mines on standby, the initial trials
were set at 250,000 MTW/month which was sold under its company shell to test the waters. Each mine is
capable of delivering 250,000MTW per month with the use of a single crusher. We have available
additional crushers positioned by the manufacturer for a rapid placement within any of the mines to allow
us to control the specific quantity for mixing large volumes of ore since each mine has a different
specification.
It was pointless to acquire mines unless there was the means upon which to ship the ore. NHI has
worked closely with the government of Mexico to develop four ports which would facilitate the means to
ship over 20 million MTW per month. We also set up mixing areas that would allow us to blend the ore to
meet exact specification requirements from any buyer. In addition, we have acquired the means to
process the ore into any of the three normal usages of iron ore known as sinter feed fines, lump and
pellet.
Since most buyers have issues regarding the proof of product, we have provided the following photos and
test results from parts of the operations. Please note that we have not disclosed all of the operations and
will not do so until the client has met its fiduciary responsibility under a contract. The mines are currently
owned by Samuel W Miller, and the ore is being sold by Network Scrap Metal Corporation which is also
owned by Samuel W Miller under a sales management agreement. Once the client meets their fiduciary
obligation, Sam Miller and his staff will personally provide full site visits without hesitation.
The iron ore is offered under C&F or FOB basis Mexico. Financial terms are available under two ways
only 1) revolving monthly purchase under unconditional MT103 or 2) fixed price for term with a deposit
under unconditional MT103 deposit and a revolving DLC under MT799. Sam Miller will not consider any
other offer as there are too many scam artists who have attempted to steal the mines and material. Site
visits will not be allowed until the MT103 is completed.

Reporte concentrado de resultados de Mineral de Hierro mina


Andrea
INSTITUTO DE GEOLOGIA DE
LA UNAM

SGS de Mxico S.A.


de C.V.

ERSA GLOBAL MEX.

D E S C R I P C I N

FE total

70,76

69,17

69,88

Si O2

1,97

2,2

Ti O2

0,22

N/R

0,19

Al2 O3

0,06

0,25

0,18

Mn O

0,11

N/R

0,09

Mg O

0,365

N/R

0,44

Ca O

0,085

N/R

0,09

Na2 O

0,025

N/R

K2 O

0,01

N/R

0,005

P2 O5

N/R

4,7

0,04

0,011

N/R

<0,01

<0,01

0,024

Altamira, Tamps., March 15th, 2007.

ANALYSIS REPORT
SGS MEXICO REF
:
DESCRIPTION OF PARCEL
PER INSTRUCTIONS OF :

M-5XXXX/07
:
ONE SAMPLE OF IRON ORE IN BULK
XXXXXXXXXXXXXXXXXXXXXXX
- MEXICO

We hereby certify that in compliance with the instructions received from our principal, Mr.
XXXXXXXXXXXXX, we delivered the sample to our SGS LAKEFIELD MINERALS LAB IN CANADA for the
analysis of the above sample and for which we report the following:
ANALYSIS
According to the report CA09305-MAR07 dated on March 11th, 2007, the results obtained were as follows:

DESCRIPTION
Iron Ore Fines

Fe
%

SiO2 Al2O3 P2O5


%
%
ppm

69.17 2.00

0.25

S
%

4.70 <0.01

REMARK: The sample analyzed was received at our facilities.


This report reflects the findings determined at time and place of our intervention only.

Elaborated by: Felipe Cruz Villasana

SGS de Mxico S.A. de C.V.


Minerals Services

Authorized by: Hugo Mujica Sanchez

Laguna Machona Lote 2 Manzana 2, Parque de la Pequea y Mediana Industria, 89600 Altamira, Tamaulipas, Mxico
t +(52-833) 260-00-50 & 260-00-51 f +(52-833) 260-0052 www.sgs.com
Member of the SGS Group (Socit Gnrale de Surveillance)