1985-06-03

Masto Wire Service A/S

Industrigaten 12

P.O. Box 1133

4601 Kristiansand S.

Norway

Attention: Mr. Tor B. Kradeboen

Dear Tor

With respect to Texaco Canada Inc. activity in the sales of Masto lubricators it is timely that we inform you of some of our activities and experience for your information.

Our primary cusomers are the minig industry where Masto always proves to be superior to any other method available. Our main competitor is the Shell Class system which has several disadvantages versus Masto:

- it must be on a scheduled basis when the Shell unit is available.

- the Shell system has difficulty recycling contaminants found in hardrock minig.

- it is expensive and has not yet indicated extended rope life.

- it is recommended every 3 months which is in our opinion too long a time.

- monthly exterior sprays with an ISO 320 oil seem to refer to the old method of rope lubrication.

Masto is beginning to see documented increase in rope life. We will attempt to secure testimonial letter on this. For example:

- a balance rope 44mm – 6x19 was near the end of its life in December 1984. Masto arrested further deterioration and the rope is still in service.

- a 56mm – 6x37 IWRC production rope has passed its predecessors record of tonnage and probably will exceed 1,000,000 tonnes.

- a 44mm – 6x22 IWRC production rope shows only 3% reduction of electromagnetic testing after 300,000 tonnes. Normal life expectancy is 450,000 tonnes.