TRANSACTION PROCEDURES

CLOSING PROCESS
The closing procedures are fully Bank-compliant and have been approved by our
Transacting Bank, HSBC, Hong Kong (Legal Dept.):
1. The Buyer and Seller sign the contract (which is transmitted electronically) and
lodge the legally binding agreement with their respective Banks.
2. The Seller's Bank Officer contacts the Buyer's Bank Officer during the
appointed Bank "window time". The Bank Officers confirm the “readiness”
status of their respective bank customers.
3. The Buyer's Bank Officer transmits a Bank Confirmation Letter via SWIFT MT
799 confirming the Buyer’s financial capability. During the same bank “window
time”, the Seller’s Bank Officer remits a SWIFT MT 600 confirming that the Bank
holds in its possession the original product documents in the Seller’s name.
Note: Where the Buyer's Bank is HSBC, Hong Kong, POP/POF verification is
conducted internally inside the Bank. The Buyer's Bank Officer transmits a
Bank Tear Sheet via bank fax to the Seller’s Bank Officer and receives, in
return, an authenticated copy of the Seller's Custodial Safekeeping Receipt.
4. After the POF/POP verification has concluded, the Buyer transfers its funds
into HSBC, Hong Kong, into a dedicated account in the Buyer’s own name, to
facilitate the "ledger-to-ledger" transfer of payment upon closing.
Note: The Seller’s Bank Officer can, where required, open a bank account for
the Buyer in HSBC, Hong Kong on a “bank-to-bank” basis. Alternatively, Buyers
who hold their funds in HSBC, London may use HSBC, London as the
Settlement Bank.
5. Once the Buyer’s funds have cleared on deposit, the Seller's Bank Officer issues
a Bank Invitation Letter inviting the Parties and their respective delegations to
attend a Table Top Meeting inside the Bank. At that time, the Seller's Bank Officer
will provide the Buyer’s Bank Officer with true copies of the product documents
necessary to pass legal title of the Lift amount to the Buyer.
6. The Buyer’s Bank Officer, after positive verification of the Seller's product
documents, blocks the Buyer’s funds under the Buyer’s Bank Officer’s control for
the value of the 200 MT Lift amount as a guarantee of payment for the Au Metal.
At the same time, the Seller’s Bank Officer blocks the Seller’s product
documents covering the 200 MT Lift amount as a guarantee of transfer of
title/delivery of the Au Metal to the Buyer, thereby creating mutual guarantees.
7. The next day, the Seller delivers the Lift amount to Metalor refinery, Hong Kong
for a final assay. Alternatively, the Buyer may request that the Seller engage
Metalor’s Assayer Team to conduct the final assay at Seller's security warehouse.
Note: Optionally, the Buyer may utilize their own certified Assayers to attend at
the Seller’s security warehouse and conduct the final assay in-situ.
Alternatively, the Buyer may request that HSBC, Hong Kong collect the newly
assayed Lift amount from Metalor refinery and transfer the bullion into Bank
vault storage.
8. After assay completion, the Parties’ Bank Officers jointly calculate the purchase
price, transfer the product documents into the Buyer’s name, and then proceed
to close the transaction on a "delivery (transfer of title)-versus-payment" basis.
The Buyer and Seller may be present in the Bank for the closing.