**EXHIBIT        10.3**

**LOAN          NOTE INSTRUMENT**

**DATED          JUNE 16, 2006**

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|    **METAL                SANDS LIMITED**  |
|----------------------------------------------------------------|

|                  **LOAN                NOTE INSTRUMENT****relating                to the issue of £2,000,000 Secured Convertible****Loan                Notes**  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **Osborne                  Clarke**One                  London WallLondonEC2Y                  5EBTelephone +44                  (0) 20 7105 7000Fax +44                  (0) 20 7105 7005 401997-v1\SYDDMS\FC2 |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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**TABLE      OF CONTENTS**

| 1                               | DEFINITIONS                  AND INTERPRETATION                                         |  1  |
|---------------------------------|-----------------------------------------------------------------------------------------|----------|
| 2                               | AMOUNT                  AND STATUS OF LOAN NOTES                                        |  5  |
| 3                               | INTEREST                                                                                |  5  |
| 4                               | REDEMPTION                  OF LOAN NOTES                                               |  5  |
| 5                               | PREPAYMENT                                                                              |  6  |
| 6                               | DEFAULT                  EVENTS                                                         |  6  |
| 7                               | CONVERSION                  INTO ORDINARY SHARES                                        |  7  |
| 8                               | ISSUE                  OF WARRANTS ON CONVERSION                                        |  8  |
| 9                               | TRANSFER                                                                                |  9  |
| 10                              | TRANSMISSION                                                                            |  9  |
| 11                              | CERTIFICATES                                                                            |  9  |
| 12                              | REGISTER                  OF THE LOAN NOTES                                             | 10       |
| 13                              | WARRANTIES                  AND UNDERTAKINGS                                            | 10       |
| 14                              | MEETINGS                                                                                | 12       |
| 15                              | SECURITY                                                                                | 13       |
| 16                              | FURTHER                  LOAN, SHARE CAPITAL OR DEBT ISSUES                             | 13       |
| 17                              | NO                  SET-OFF                                                             | 13       |
| 18                              | AMENDMENT                  OF INSTRUMENT                                                | 13       |
| 19                              | COSTS                  AND EXPENSES                                                     | 13       |
| 20                              | THIRD                  PARTY RIGHTS                                                     | 14       |
| 21                              | GOVERNING                  LAW AND JURISDICTION                                         | 14       |
| SCHEDULES                  |                                                                                    |
| Schedule                1  | Loan Note                Certificate                                               |  15 |
| Schedule                2  | Provisions                as to                Registration, Transfer and Other Matters |  17 |
| Schedule                3  | Provisions                for Meetings                of the Noteholder       |  19 |

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**THIS      INSTRUMENT**

| **BY:** | **METAL                SANDS LIMITED**a                company registered in England and Wales under company number 5589527                whose                registered office is at Minerva House, 5 Montague Close, London SE1                9BB                (the **“Company”**). |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**RECITALS:**

**Loan      Notes”**

**TERMS:**

| 1 | **DEFINITIONS                AND INTERPRETATION** |
|---|---------------------------------------------------|

| 1.1 | **Definitions** |
|-----|-----------------|

**Admission**
**AIM**
**Admitted**

**Aggregate      Nominal Amount**

**Business      Day**

**Business      Plan**

**Certificate**

**Change      of Control Event**
**Bidder**

**Commencement      Date**

**Conversion      Notice**

**Conversion      Period**

----

**Conversion      Price**

**Debenture**

**Default      Event**

**Default      Interest Rate**

**Directors**

**Exit      Date**

**Exit      Event**

|   | (a) | an                Admission; or |
|--------|-----|---------------------------------|

|   | (b) | a                Sale; |
|--------|-----|------------------------|

**Extraordinary      Resolution**

**Group      Company**

**Instrument**

**Interest      Rate**

**Investment      Agreement**
** **

**Investment      Documents**

**Loan      Notes**

|   | (a) | the                secured convertible loan notes of the Company constituted by this                Instrument; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                amount of the secured convertible loan notes of the Company constituted                by                this Instrument then issued and outstanding and fully paid up;                or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a                specific portion of the secured convertible loan notes of the Company                constituted by this Instrument or the principal monies represented                by the                secured convertible loan notes of the Company constituted by this                Instrument; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Noteholders**

----

**Ordinary      Shares**

**Permitted      Security**

|   | (a) | any                security created by the Security Documents or otherwise created in                favour                of (or for the benefit of) the Noteholder in its capacity as a                Noteholder; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | liens                arising by operation of law and in the ordinary course of                trading; |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (c) | security                arising out of title retention or set-off provisions in a supplier’s                standard conditions of supply of goods where the goods in question                are                supplied on credit and are acquired by the Company in the ordinary                course                of trading; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | any                other security to which the Noteholder have given their prior consent                by                Extraordinary Resolution; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

**Placing**

**Recognised      Investment Exchange**

**Redemption      Date**

**Register**

**Registered      Office**

**Sale**

**Security      Documents**

**Shares**
** **

**VWAP**

**Warrant      Instrument**

**Warrants**

----

| 1.2 | **Interpretation** |
|-----|--------------------|

|   | (a) | the                singular includes the plural and vice versa and any gender includes                the                other gender; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | ‘person’                includes a firm, a partnership, a body corporate, an unincorporated                association or body, a state or agency of state, trust or foundation                (whether or not having separate legal                personality); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | an                obligation: |
|--------|-----|-------------------------------|

|   | (i) | in                favour of two or more persons is for their benefit jointly and severally;                and |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (ii) | on                the part of two or more persons binds them jointly and                severally; |
|--------|------|----------------------------------------------------------------------------------------------------|

|   | (d) | a                reference to: |
|--------|-----|--------------------------------|

|   | (i) | a                person includes that person’s heirs, executors, administrators,                successors, and assigns; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | a                document means that document as amended, replaced or                novated; |
|--------|------|-----------------------------------------------------------------------------------------------|

|   | (iii) | a                statute or other law means that statute or other law as amended or                replaced, whether before or after the date of this deed and includes                regulations and other instruments made under                it; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | a                clause or schedule is a reference to a clause or a schedule in this                Instrument; |
|--------|------|-----------------------------------------------------------------------------------------------------------------|

|   | (v) | a                thing or an amount includes the whole and each part of                it; |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | (vi) | a                month means a calendar month; and |
|--------|------|----------------------------------------------------|

|   | (vii) | a                group of persons includes all of the collectively, any two or more                collectively and each of them                individually; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | where                the word ‘including’ or ‘includes’ is used, it is to be taken to be                followed by the words: ‘but not limited to’ or ‘but is not limited to’, as                the case requires; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | where                a period of time is expressed to be calculated from or after a specified                day, that day is included in the period; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | “£”                denotes the lawful currency of the United Kingdom; |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (h) | a                reference to “date of redemption” means the date on which all the                outstanding principal on all the outstanding Loan Notes is finally                paid;                and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any                reference to a document being “in the agreed form” means in a form agreed                by the Company and by or on behalf of the Noteholders and initialled                for                the purposes of identification. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.3 | **Business                Days** |
|-----|----------------------------------|

| 1.4 | **Headings** |
|-----|--------------|

| 2 | **AMOUNT                AND STATUS OF LOAN NOTES** |
|---|----------------------------------------------------|

| 2.1 | The                Noteholder will not be under any obligation to subscribe for Loan                Notes                until the Company and the Noteholder have entered into the Investment                Agreement on or about the date of this                Instrument. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | The                aggregate principal amount of the Loan Notes is limited to                £2,000,000. |
|-----|---------------------------------------------------------------------------------------------------------------|

| 2.3 | The                Company will issue the Loan Notes for cash at par (being £1.00 per Loan                Note) in integral multiples of£1.00. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | Subject                to this Instrument and the Schedules the whole of the Loan Notes                as and                when issued shall rank *pari                passu*                equally and rateably without discrimination or preference and as                an                obligation of the Company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5 | No                application has been or will be made to any Recognised Investment                Exchange                for the listing of, or for permission to deal in, the Loan                Notes. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.6 | The                Company shall pay or reimburse any stamp duty, stamp duty reserve                tax or                other duties or taxes payable in the United Kingdom in connection                with the                execution of this Instrument or the constitution, issue, redemption                or                conversion of the Loan Notes. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | **INTEREST**** ** |
|---|------------------------|

***Accrual      of Interest***

| 3.1 | Interest                on the principal amount of the Loan Notes at the Interest Rate will                accrue                from day to day (on the basis of a 365 day year), shall be calculated                monthly and shall be capitalised quarterly, unless the Noteholder                directs                that it wishes to be paid accrued interest, in which case interest                shall                be payable in arrears in accordance with Clause 3.2                below. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | ***Method                of payment of                interest*** |
|-----|-------------------------------------------------------------------|

| 4 | **REDEMPTION                OF LOAN NOTES** |
|---|---------------------------------------------|

| 4.1 | On                or after the Exit Date, all Loan Notes not converted are redeemable                and                any accrued interest shall be paid by the Company if the Noteholder                serves                a written notice on the Company providing 10 days written notice                of the                request. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Subject                to Clause 4.3, all Loan Notes not converted or redeemed (in whole                or in                part) by the Redemption Date and all Loan Notes not converted immediately                prior to an Exit Event may be redeemed by the Company and any accrued                interest shall be paid by the Company on or after that date, at par                by 30                days prior written notice to the                Noteholder. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.3 | In                order to exercise its rights pursuant to Clause 4.2, the Company                must                serve upon the Noteholder a notice of the redemption pursuant to                clause                4.2. This notice will be irrevocable and be an enforceable undertaking                in                favour of the Noteholder. The Noteholder may require written evidence                that                the funds are available to effect payment. The Noteholder may within                28                days of service of such notice serve notice that instead of redemption,                it                wishes to convert the Loan Notes and any accrued                interest. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | All                Loan Notes redeemed or converted by the Company pursuant to the terms                of                this Instrument will be cancelled and will not be available for                reissue. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | In                the event that any income or other tax is deducted from a payment,                the                Company will issue to the Noteholder as soon as reasonably practicable                a                certificate of deduction of tax in respect of the tax deducted or                withheld. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6 | The                Aggregate Nominal Amount and any accrued interest shall, for so long                as it                remains unpaid and unconverted, remain capable of being converted                pursuant                to Clause 7. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | **PREPAYMENT** |
|---|----------------|

| 5.1 | The                Company shall not be entitled to pre-pay any or all of the principal                without the prior approval of the relevant                Noteholders. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | The                Company shall immediately notify the Noteholders in writing of a                Change of                Control Event (the “**Notification**”)                and shall promptly disclose to the Noteholders all reasonably requested                information in relation thereto. Within 60 days of receipt of the                Notification, the Noteholders shall be entitled by giving notice                in                writing to the Company to demand immediate repayment of the Aggregate                Nominal Amount and any accrued interest held by the Noteholders or                the                immediate conversion of all outstanding Loan Notes and repayment                of any                accrued interest. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | **DEFAULT                EVENTS** |
|---|-----------------------------------|

| 6.1 | Without                prejudice to Clauses 4 and 5 and subject to Clause 6.2, all outstanding                Loan Notes are immediately repayable at par along with any accrued                interest on the happening of any of the following events (each a                “**Default                Event**”): |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the                Company fails to repay any principal on the Loan Notes within 10                days of                the due date for redemption or payment thereof (including pursuant                to a                redemption notice issued by the Company pursuant to Clause 4.2);                or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if                an order is made or an effective resolution passed for winding-up                of any                Group Company (otherwise than for the purposes of or in the course                of a                solvent re-organisation, reconstruction or amalgamation previously                approved by the Noteholder); or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | if                an encumbrancer has taken possession of or if a receiver, administrative                receiver, liquidator, judicial factor or other similar officer is                appointed to take possession of the whole or any material part of                the                property or undertaking of any Group Company and in any such case                is not                discharged, withdrawn or removed within 30 days of possession being                taken                or an appointment being made (excluding any period during which the                possession or appointment is being contested in good faith);                or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | any                administration order or any administration application has been made                in                respect of any Group Company; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | if                any Group Company (otherwise than in the course of a reorganisation,                reconstruction or amalgamation with another company in terms previously                approved by the Noteholder) ceases or threatens to cease to carry                on its                business or a substantial part of its business;                or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | any                Group Company is deemed to be unable to pay its debts as they fall                due or                is unable to pay its debts pursuant to or for the purposes of any                applicable law; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | if                a material default or breach is made by any Group Company in the                performance or observance of any covenant or provisions (other than                any                covenant for the payment of the principal amount of the Loan Notes)                binding on it under the Investment Documents which has a material                adverse                effect on the Company (to be determined by the Noteholders acting                reasonably) and, in the case of any default or breach which is capable                of                remedy, any Group Company fails to remedy the breach within the period                of                20 days after receipt of a written request by the Noteholders;                or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | if                the security constituted by any mortgage, charge or other security                document of any Group Company becomes enforceable as a result of                an event                of default (other than an event of default arising out of a liability                being contested in good faith) and the security holder takes steps                to                enforce the security; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | if                any warranty given by the Company pursuant to the Investment Documents,                proves to have been incorrect in any material respect;                or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | if                in the reasonable assessment of the Noteholders the Group Company                has                failed to achieve the agreed financial projections, milestones and/or                goals as set out in the Business Plan; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | if                the Debenture becomes enforceable in accordance with its                terms. |
|--------|-----|--------------------------------------------------------------------------------------------------|

| 6.2 | The                Company will immediately give notice to the Noteholders of the happening                of any Default Event upon becoming aware of the same. If any Noteholder                shall waive in writing its right to repayment of the Aggregate Nominal                Amount and any accrued interest due to it whereupon the Loan Notes                held by                such Noteholder and any accrued interest due to them shall remain                outstanding. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | **CONVERSION                INTO ORDINARY SHARES** |
|---|----------------------------------------------------|

| 7.1 | Subject                to the following provisions of this Clause 7, the Loan Notes (in                whole or                in multiples of 1,000) and any accrued interest may be converted                into                Shares at any time during the Conversion Period by a Noteholder serving                on                the Company a duly completed Conversion Notice. The Conversion Notice                shall state the date on which the conversion is to take place which                shall                not, without the prior agreement with the Company, be sooner than                7 days                from the date of the Conversion Notice. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | The                Loan Notes shall carry the right to be converted into Shares at a                conversion price per share which is the lesser                of: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) |   |
|--------|-----|--------|

|   | (i) | fifty                per cent (50%) of the price per Share at which the Placing takes                place; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | if                no Placing occurs the average VWAP for a Share for the first ten                days                after Admission; and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                price per Share which would result in all Noteholders if they converted                all Loan Notes holding 29.9% of the fully diluted share capital of                the                Company (excluding any Warrants that would be or have been issued                to or                held by any Noteholders or their nominees) after                conversion. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | Shares                issued by way of conversion shall be credited as fully paid and shall                rank                pro rata for dividends or other distributions declared paid or made                on or                at any time after conversion and shall rank pari passu with any Shares                then in issue. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | As                soon as reasonably practicable after conversion pursuant to this                Clause 7,                and in any event not later than 10 days after allotment (but subject                to                the Company receiving the Certificate representing the Loan Notes                so                converted) the                Company will at the Noteholder’s option either (i) issue a share                certificate for the number of Shares to which the Noteholder is                entitled                free of charge to the Noteholder who has surrendered its Certificate                to                the Company or (ii) credit the Noteholder’s CREST account at                Admission. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5 | If                the Company becomes aware that an Exit Event will occur, it will                notify                each Noteholder in writing (setting out details of the Exit Event)                as soon                as practicable and in any event no later than 15 Business Days before                the                Exit Event and: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | each                Noteholder must notify the Company in writing whether it intends                to                convert any or all of its Loan                Notes: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | in                the case of Admission, at least 5 Business Days before the date the                Company notifies that it will issue an Admission Document;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in                the case of a Sale, at least 5 Business Days before the date of completion                of the Sale. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If                the Company does not receive a notification in writing from a Noteholder                within the period specified above, that Noteholder will be deemed                to have                irrevocably elected not to convert their Loan                Notes. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | In                respect of those Loan Notes that Noteholders have confirmed they                intend to                convert, they shall be deemed to have irrevocably given a Conversion                Notice in respect of such Loan Notes, conditional upon the Exit Event                occurring, and such Loan Notes shall automatically be converted into                Shares immediately before such Exit Event;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | In                respect of those Loan Notes that Noteholders have confirmed they                do not                intend to convert, the conversion right attaching to such Loan Notes                shall                cease, conditional upon an Exit Event occurring within 15 Business                Days of                the date the Noteholder is deemed to have irrevocably elected not                to                convert their Loan Notes pursuant to clause 7.5(b)                above.. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | **ISSUE                OF WARRANTS ON CONVERSION** |
|---|----------------------------------------------------|

**Conversion**

----

| 9 | **TRANSFER** |
|---|--------------|

| 10 | **TRANSMISSION** |
|----|------------------|

| 11 | **CERTIFICATES** |
|----|------------------|

| 11.1 | The                Certificates will be in the form or substantially in the form set                out in                Schedule 1. |
|------|---------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | Every                sole Noteholder is entitled without charge to receive one Certificate                for                the Loan Notes held by that                Noteholder. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | Joint                Noteholders are entitled to only one Certificate in respect of the                Loan                Notes held jointly by them. Such Certificate will be delivered to                the                joint holder whose name stands first in the Register in respect of                the                joint holding or to another person as the joint holders direct in                writing. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4 | The                Company is not bound to register more than 4 persons as joint holders                of                any Loan Notes. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------|

| 11.5 | Where                part of a holding of Loan Notes has been transferred, converted or                redeemed the Company will issue, free of charge to the relevant                Noteholder, a fresh Certificate for the balance of the Loan Notes                retained                by that Noteholder. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.6 | The                Company will recognise the registered holder of any Loan Notes as                the                absolute owner of the Loan Notes. The Company is not bound to take                notice                or see to the execution of any trust whether express, implied or                constructive to which any Loan Notes may be subject. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.7 | The                receipt of the registered holder for the time being of any Loan Notes                or                in the case of joint registered holders the receipt of any of them                for any                other monies payable in respect of the Loan Note is a good discharge                to                the Company, despite any notice it may have, whether express or otherwise,                of the right, title, interest or claim of any other person to or                in such                Loan Notes or monies. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.8 | Every                Noteholder, any of whose Loan Notes are due to be redeemed or converted                under any of the provisions of this Instrument, shall, not later                than the                due date for such redemption or conversion, deliver up to the Company                (at                its Registered Office) the Certificate(s) for the Loan Notes which                are due                to be redeemed or converted (or an indemnity in lieu thereof in a                form                acceptable to the Company where such Certificate(s) is lost, defaced                or                destroyed), in order that the same may be cancelled and, upon such                delivery, the Company shall pay the relevant redemption amount to                the                Noteholder or allot Ordinary Shares to the Noteholder (as the case                may                be). If any Certificate so delivered includes any Loan Notes which                are not                to be redeemed or converted at the time at which it is so delivered,                the                Company shall issue to the Noteholder, without charge, a new Certificate                for the balance of such Loan Notes. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.9 | If                any Noteholder, any of whose Loan Notes are liable to be redeemed                or                converted under any of the provisions of this Instrument, shall fail                or                refuse to deliver up the Certificate(s) for such Loan Notes (or an                indemnity in lieu thereof acceptable to the Company where such                Certificate(s) is lost, defaced or destroyed) at the time and place                fixed                for the redemption or conversion of such Loan Notes,                then: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | if                the Loan Notes are being redeemed for cash, the Company shall set                aside                the relevant amount due to that Noteholder, pay it into a separate                interest-bearing bank account which shall be held by the Company                in trust                for such Noteholder (but without interest (save as may accrue in                such                account)) and such setting aside shall be deemed, for all purposes                of                these conditions, to be a payment to such Noteholder and the Company                shall                thereby be discharged from all obligations in connection with such                Loan                Notes. If the Company shall place such amount on deposit at a bank,                the                Company shall not be responsible for the safe custody of such amount                or                for any interest accruing on such amount in such account;                and |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | if                the Loan Notes are being converted into Ordinary Shares, the Company                shall                not be obliged to allot and issue any Ordinary Shares to that Noteholder                unless and until the Certificate (or indemnity) is so delivered (but                that                otherwise for the purposes of this Instrument such Loan Notes shall                be                deemed to have been converted and                cancelled). |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12 | **REGISTER                OF THE LOAN NOTES** |
|----|-----------------------------------------------|

| 12.1 | The                Company will at all times keep at its Registered Office, or at such                other                place within the UK as the Company may have appointed for the purpose,                a                register showing: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the                nominal amount of the Loan Notes held by every                Noteholder; |
|--------|-----|----------------------------------------------------------------------------------------------|

|   | (b) | the                serial number of each Loan Note                issued; |
|--------|-----|---------------------------------------------------------------------------|

|   | (c) | the                date of issue and all subsequent transfers and changes of ownership;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (d) | the                names and addresses of the Noteholder. |
|--------|-----|-----------------------------------------------------------|

| 12.2 | Any                Noteholder may at all reasonable times during office hours inspect                the                Register and take copies of or extracts from the Register. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3 | The                Register may be closed by the Company for such periods and at such                times                as it thinks fit but not for more than 30 days in any calendar year. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4 | Any                change of name or address on the part of any Noteholder will be notified                to the Company and the Register will be altered                accordingly. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13 | **WARRANTIES                AND UNDERTAKINGS** |
|----|------------------------------------------------|

| 13.1 | The                Company undertakes to each Noteholder                that: |
|------|-------------------------------------------------------------------------------|

|   | (a) | it                will perform and observe the obligations imposed on it by this                Instrument; |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (b) | it                will comply with the provisions of the Certificates and the provisions                set                out in Schedules 2 and 3; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | it                shall at all times prior to the conversion or redemption of the Loan                Notes                in full, keep available for issue sufficient authorised but unissued                share                capital to satisfy in full the Company’s obligations on conversion of the                Loan Notes; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | the                Loan Notes are held subject to and with the benefit of the terms                and                conditions set out in this Instrument and are binding on the Company                and                the Noteholder and all persons claiming through or under                them. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | The                Company warrants to each of the Noteholders on the date of this                Instrument, and on the date a Noteholder subscribes for Loan Notes,                as                follows (each a Warranty): |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | it                is duly incorporated and validly existing under the laws of England                and                Wales; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | it                has the power and authority to enter into this Instrument and to                issue the                Loan Notes and to exercise its rights and perform its obligations                under                this Instrument and the Loan Notes; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | it                has taken all necessary corporate, shareholder and other action to                authorise the execution, delivery and performance of this Instrument                and                the Loan Notes; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the                obligations expressed to be assumed by it in this Instrument and                the Loan                Notes are, in each case, legal and valid obligations, binding on                it in                accordance with the terms of this Instrument and the Loan                Notes; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | all                consents, licences, approvals, authorisations, waivers, filings and                registrations required in connection with the entry into, and performance                of, this Instrument and the Loan Notes by it have been obtained and                are in                full force and effect; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the                Company is not involved in any litigation, arbitration, prosecution                or                other legal proceedings nor are any such proceedings threatened or                pending                against the Company or any of its                Directors; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | the                Company is not insolvent and no order has been made, petitioned,                presented                or resolution proposed for the appointment of a liquidator, administrator,                receiver or similar officer over or in respect of the Company or                any of                its assets; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | the                execution and delivery of this Instrument, and the performance by                it of                its obligations under this Instrument and the Loan Notes do not,                and will                not, contravene any law, regulation, official or judicial order or                any                mortgage, bond or other instrument or document to which it is a party                or                which is binding on it or any of its                assets; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | each                of the Group Companies has been duly incorporated, continued or                amalgamated and is validly subsisting under the laws of the jurisdictions                in which it is incorporated, continued or                amalgamated; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | there                shall not be any consents, approvals, authorisations, orders or agreements                of any stock exchanges, securities commissions or similar authorities,                governmental agencies or regulators, courts or any other persons                which may                be required for the issuance of the Ordinary Shares upon conversion                and                the delivery of the certificates representing the Ordinary Shares,                not                obtained and not in effect on the date of delivery of such certificates;                and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | upon                Conversion of the Loan Notes, the Noteholder will acquire good and                marketable title to the relevant Ordinary Shares free of any mortgage,                lien, charge encumbrance or adverse interest                whatsoever. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | The                Company acknowledges that the Noteholders are subscribing for the                Loan                Notes in reliance on each of the                Warranties. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.4 | The                Company agrees to notify the Noteholders as soon as reasonably practicable                after it becomes aware of any breach of any of the Warranties after                the                date of this Instrument. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.5 | While                any of the Loan Notes remain outstanding, the Company undertakes                that it                will and will procure that all Group Companies                will: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | not                make a declaration or distribution of any dividend or distribute                any                capital or profits to shareholders without offering to the Noteholder                the                right to early repayment of the Aggregate Nominal                Amount; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | amend,                repeal, supplement or otherwise change its Memorandum and Articles                in any                manner; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | not                sell, transfer, lease, assign, or otherwise dispose of a material                part of                the undertaking, property, assets of the Company or of any Group                Company,                or contract so to do otherwise than in the ordinary and proper course                of                its business or as part of a Sale; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | not                grant any options or warrants or grant to any person the right to                be                issued with Ordinary Shares excluding bona fide issues of options                or                warrants to directors or employees under an approved incentive plan                without first issuing to the Noteholders a pro rata number of such                options                or warrants on the same terms; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | not                issue any debt convertible into Ordinary Shares without first offering                to                the Noteholder the option to vary the terms of this Instrument to                be                consistent with some or all of the terms of the proposed convertible                debt                (as nominated in its absolute discretion by the                Noteholder). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.6 | **Limitations                on Warranties** |
|------|----------------------------------------------|

|   | 13.6.1 | The                Company shall not be liable in respect of any and all claims for                any                breach of Warranties (a “**Relevant                Claim**”)                unless written notice, setting forth in reasonable detail the Relevant                Claim and delivered pursuant to the Company, shall have been given                on or                before an Exit Event (provided that each Noteholder is given 14 Business                Days notice of the Exit Event and at the same time received the Admission                Document, Information Memorandum or other relevant information in                relation                the Exit Event). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.6.2 | The                limitations on the Company’s liability in this clause 13.6 shall not apply                to the extent that a Relevant Claim arises out of a Company fraud,                wilful                non-disclosure or knowing omission. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.6.3 | No                liability of the Company in respect of any claim for breach of any                Warranty shall arise to the extent                that: |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | it                arises or is increased as a result of the passing of any legislation                (or                the making of any subordinate legislation) with retrospective effect,                or                by reason of any change to taxation authority practice, occurring                after                the date the Warranty is given; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                claim arises wholly or partly out of or is increased by a contingent                liability unless and until such contingent liability becomes an actual                liability; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                claim arises out of or is increased by any change in the law or its                interpretation or administration or any change in the practice of                any                authority arising after the date the Warranty is given;                or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | the                matter giving rise to the claim is remediable unless within 60 days                of                Noteholders having become aware of such matter, Noteholders have                given                written notice to the Company and such matter has not been fully                remedied                by the Company without cost to Noteholders within 30 days of the                service                of such notice; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any                matter giving rise to the claim is fairly disclosed in the Disclosure                Letter, this Instrument or the Agreed Form documents set out in Schedule                6                of the Investment Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.6.4 | Save                in the case of fraud, wilful non-disclosure or any knowing omission                the                aggregate amount that the Noteholder shall be entitled to recover                from the                Company under the Warranties shall be limited to the amount subscribed                by                the subscribers for the Loan Notes and the Noteholders shall not                be                entitled to recover any indirect or consequential                loss. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14 | **MEETINGS** |
|----|--------------|

| 15 | **SECURITY** |
|----|--------------|

| 16 | **FURTHER                LOAN, SHARE CAPITAL****OR DEBT ISSUES** |
|----|------------------------------------------------------------------|

| 16.1 | The                Company undertakes that it will not and will procure that no Group                Company                shall create any security over the Company’s assets or undertakings other                than Permitted Security, in any case without the prior approval of                the                Noteholder given by Extraordinary Resolution of the Noteholder. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | In                the event that the Company issues any other debt, convertible into                Shares                prior to or at Admission then RAB shall be entitled, at its option,                to                vary some or all of the terms of the Loan Notes to accord with some                or all                of the terms of the new convertible                debt. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17 | **NO                SET-OFF** |
|----|-------------------------------|

| 18 | **AMENDMENT                OF INSTRUMENT** |
|----|--------------------------------------------|

| 19 | **COSTS                AND EXPENSES** |
|----|---------------------------------------|

| 19.1 | The                Company shall reimburse the Noteholder and in respect of all expenses,                including, without limitation, legal fees (and any value added or                similar                tax thereon) incurred by the Noteholder in connection with                the negotiation and execution of this Instrument any actual or proposed                amendment or extension of, or any waiver or consent under, or the                enforcement or preservation of any of their respective rights under                this                Instrument, or any of the documents referred to                herein. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 19.2 | The                amounts payable under Clause 19.1                shall carry interest at the Default Interest Rate (as well after                as before                any judgment) from the dates on which they were paid, incurred or                charged                by a Noteholder. All such interest shall be compounded at the end                of such                period or periods as the Noteholder may                select. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20 | **THIRD                PARTY RIGHTS**** ** |
|----|-------------------------------------------------|

| 21 | **GOVERNING                LAW AND JURISDICTION** |
|----|---------------------------------------------------|

| 21.1 | **Governing                law** |
|------|----------------------------------|

| 21.2 | **Jurisdiction** |
|------|------------------|

| 22 | **DURATION                OF OBLIGATIONS** |
|----|--------------------------------------------|

----

**SCHEDULES**

**Schedule      1**

**Loan      Note Certificate**

**No.**
**of      Certificate ....................... Amount of Loan Notes£.....................**

**METAL      SANDS LIMITED**

**(“the      Company”)**

**(Registered      in England and Wales under number 5589527)**

**[Insert      number] Secured **

**Convertible      Loan Notes**

**Instrument**

| EXECUTED                    as a                    DEED  |   |    |   | Director             |
|----------------------------------------------------------------|--------|---------|--------|---------------------------|
| for                    and on behalf                    of     |   | )       |        |                      |
| **METAL SANDS                    LIMITED**                     |   | )       |        | Director /Secretary  |
| by:                                                       |   | )  |        |                      |

**NOTES**

| 1 | No                transfer or conversion of the whole or any part of the Loan Notes                represented by this Certificate can be registered or a new Certificate                issued unless accompanied by this Certificate (or a certificate of                indemnity in a form approved by the                Directors). |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Transfers** **of                Loan Notes should be lodged for registration with the Company at                its                Registered Office. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**CONVERSION      NOTICE**

| * | Insert                date on which conversion will                occur. |
|---|---------------------------------------------------------------------------|

| ** | If                no amount is inserted, the whole of the principal amount of the Loan                Notes                held by the Noteholder will be converted. If no redemption of all                Loan                Notes, must be a minimum amount and integral multiples of                £1,000. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| + | If                no name or address is inserted, the share certificate will be despatched                to the registered address of the first named                Noteholder. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ++ | In                the case of joint Noteholder, all Noteholder must sign. In the case                of                corporate Noteholder this Notice must be signed by a Director or                Secretary                or duly authorised representative of the                Noteholder. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Schedule      2**

**Provisions      as to Registration, Transfer and Other Matters**

| 1 | The                Company will recognise the registered holder of any Loan Notes as                the                absolute owner of the Loan Notes. The Company is not bound to take                notice                or see to the execution of any trust whether express, implied or                constructive to which any Loan Notes may be subject. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | The                receipt of the registered holder for the time being of any Loan Notes                or                in the case of joint registered holders the receipt of any of them                for any                other monies payable in respect of the Loan Note is a good discharge                to                the Company, despite any notice it may have whether express or otherwise                of the right, title, interest or claim of any other person to or                in such                Loan Notes or monies. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | The                Loan Notes are transferable by written instrument in any usual or                common                form (or in such other form as the Directors may approve) in minimum                amount and multiple integrals of £1,000 or the whole of a Noteholder’s                holding of Loan Notes. Subject to compliance with the terms of the                Loan                Notes, the Directors are bound to approve and arrange registration                of a                transfer of Loan Notes pursuant to this paragraph                3. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Every                instrument of transfer accompanied by the Certificate for the Loan                Notes                to be transferred must be left for registration with the Company                at its                Registered Office and every transfer will be processed in a manner                approved by the Directors. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Every                instrument of transfer must be signed by the transferor. The transferor                is                deemed to remain the owner of the Loan Notes to be transferred until                the                name of the transferee is entered in the                Register. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | No                fee may be charged for the registration of any transfer or for the                registration of any other document relating to or affecting the title                to                any Loan Notes. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | No                transfer of Loan Notes may be registered in respect of which a Conversion                Notice has been given. |
|---|-----------------------------------------------------------------------------------------------------------------------------------|

| 8 | In                the case of death of a registered holder of Loan Notes, the only                persons                recognised by the Company as having any title to such Loan Notes                are: |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the                executors or administrators of a deceased sole registered holder                of Loan                Notes; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                survivor(s) of a joint registered holder of Loan                Notes. |
|--------|-----|-------------------------------------------------------------------------------------------|

| 9 | Any                person becoming entitled to Loan Notes as a result of the death or                bankruptcy of a holder of Loan Notes or of any other event giving                rise to                the transmission of such Loan Notes by operation of law may, upon                producing such evidence as reasonably required by the Directors of                the                Company, be registered as the holder of such Loan                Notes. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | Any                principal or other monies payable in respect of the Loan Notes may                be paid                by cheque or warrant sent through the post at the risk of the holder                to: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the                registered address of the holder; or |
|--------|-----|---------------------------------------------------------|

|   | (b) | in                the case of joint registered holders, to the registered address of                the                first joint registered holder named on the Register; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | to                such person and to such address as the registered holder or the joint                registered holders may direct in writing. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 11 | If                any Certificate is defaced, lost or destroyed it may be replaced                on such                terms (if any) as to evidence and indemnity as the Directors reasonably                require. In the case of defacement the defaced Loan Note must be                surrendered before the new Certificate is                issued. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12 | Any                notice or other communication to be given under this Instrument must                be in                writing and will be served by delivering it personally or sending                it by                pre-paid recorded delivery or registered post or by facsimile to                the                address and for the attention of the relevant party set out below                (or as                otherwise notified by that party). Any notice will be deemed to have                been                received: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if                delivered personally, at the time of                delivery; |
|--------|-----|---------------------------------------------------------------------------------|

|   | (b) | in                the case of pre-paid recorded delivery or registered post, 48 hours                from                the date of posting; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | in                the case of registered airmail within 3 Business Days of the date                of                posting; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | in                the case of fax, at the time of                transmission. |
|--------|-----|--------------------------------------------------------------------------------|

----

**Schedule      3**

**Provisions      for Meetings of the Noteholder**

| 1 | The                Company may at any time, and will upon a written request signed by                the                registered holders of not less than 10% in nominal value of the Loan                Notes                for the time being outstanding, convene a meeting of the Noteholder                by                giving at least 14, and not more than 21, days notice and specifying                the                place, day and hour of the meeting. Any such notice will specify                the                general nature of the business to be transacted at the meeting convened                but, except in the case of a resolution to be proposed as an Extraordinary                Resolution, it is not necessary to specify the terms of any resolutions                to                be proposed. The non-receipt of notice or the accidental omission                to give                notice to any Noteholder does not invalidate any resolution passed                at any                such meeting. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | In                the case of a meeting convened by the Company, a Noteholder nominated                by                the Company is entitled to take the chair at every such meeting and,                in                the case of a meeting convened by the Noteholder, the Noteholder                present                will choose one of their number to be Chairman. The Directors and                officers                of the Company and any other person authorised in that behalf by                the                Directors may attend any such meeting and speak but not                vote. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | At                any such meeting convened, at least 2 persons (at least one of which                shall                be or be a proxy for the Majority Shareholder) holding or representing                by                proxy greater than 50% in nominal amount of the Loan Notes for the                time                being outstanding and the form a quorum. No business (other than                the                choosing of a Chairman) may be transacted at any meeting unless the                requisite quorum is present at the commencement of business. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | If                within 15 minutes from the time appointed for any meeting of the                Noteholder a quorum is not present the meeting, if convened upon                the                requisition of the Noteholder will be dissolved. In any other case                it will                stand adjourned to such day and time (being not less than 14 days                or more                than 21 days later) and to such place as may be appointed by the                Chairman.                At such adjourned meeting the Noteholder present in person or by                proxy and                entitled to vote whatever the principal amount of the Loan Notes                held by                them form a quorum provided that at least 7 days notice was given                of such                adjourned meeting. The notice must state that the Noteholder or Noteholder                present in person or by proxy at the adjourned meeting will form                a                quorum. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Every                question submitted to a meeting of Noteholder is decided in the first                instance on a show of hands. |
|---|----------------------------------------------------------------------------------------------------------------------------------------|

| 6 | At                any meeting of Noteholder (unless a poll is demanded by the Chairman                or by                one or more Noteholder present in person or by proxy and holding                or                representing in the aggregate not less than 5% in principal amount                of the                Loan Notes then outstanding) a declaration by the Chairman that a                resolution has been carried, or carried by a particular majority,                is                conclusive evidence of the fact. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | If                at any is meeting a poll is demanded it will be taken in such manner                and                either at once or after such adjournment as the Chairman directs                and the                result of such poll is deemed to be the resolution of the meeting                at which                the poll was demanded. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | Any                poll demanded at any meeting on the election of a Chairman or on                any                question of adjournment must be taken at the meeting without adjournment. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9 | The                registered holders of any of the Loan Notes or in the case of joint                holders any of them are entitled to vote in respect of such Loan                Notes                either in person or by proxy and in the latter case as if such joint                holder were solely entitled to such Loan Notes. If more than one                joint                holder is present at any meeting either personally or by proxy the                vote of                the senior who tenders a vote (seniority being determined by the                order in                which the joint holders are named in the register) will be accepted                to the                exclusion of the votes of the other joint                holders. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | Every                instrument appointing a proxy must                be: |
|----|----------------------------------------------------------------------------|

|   | (a) | in                writing signed by the appointer or their attorney or in the case                of a                corporation by a director, secretary or authorised representative                of the                corporation; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in                any usual or common form or in such other form as the Directors approve. |
|--------|-----|--------------------------------------------------------------------------------------------|

| 11 | Such                instrument of proxy, unless the contrary is stated, is valid as well                for                an adjournment of the meeting as for the meeting to which it relates                and                need not be witnessed. A proxy need not be a                Noteholder. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12 | The                instrument appointing a proxy and the power of attorney or other                authority                (if any) under which it is signed (or a certified copy of such power                of                attorney or authority) must be deposited at the Registered Office                of the                Company at least 48 hours before the time appointed for holding the                meeting or adjourned meeting at which the person named in the instrument                proposes to vote, in default of which the instrument of proxy is                invalid.                A vote given in accordance with the terms of an instrument appointing                a                proxy is valid despite the death or insanity of the principal or                revocation of the instrument of proxy or of the authority under which                the                instrument of proxy is given or transfer of the Loan Notes in respect                of                which it is given unless previous written notice of such death, insanity,                revocation or transfer has been received at the Registered                Office. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13 | On                a show of hands every Noteholder who (being an individual) is present                in                person or (being a corporation) is present by a representative has                one                vote and on a poll every Noteholder present in person or by proxy                has one                vote for every £1.00 nominal amount of the Loan Notes (rounded down to the                nearest pound) of which they are the                holder. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14 | Subject                to clauses 11.1 (*Certificates*)                and 18 (*Amendment                of Instrument*)                of the Instrument a meeting of the Noteholder may by Extraordinary                Resolution and with the consent of the                Company: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | sanction                any modification or compromise in any respect of: |
|--------|-----|---------------------------------------------------------------------------|

|   | (i) | the                provisions of the Instrument; or |
|--------|-----|-----------------------------------------------------|

|   | (ii) | the                rights of the Noteholder as Noteholder against the Company, whether                such                rights arise under the Instrument or otherwise; or |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | postponing                or advancing the time for the payment of the principal moneys in                respect                of the Loan Notes; or |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the                exchange of Loan Notes for other securities of the Company or any                other                company formed or to be formed; and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | may                assent to any modification proposed by the Company to the provisions                contained in the Instrument. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

----

| 15 | Subject                to clauses 11.1 (*Certificates*)                and 18 (*Amendment                of Instrument*)                of the Instrument an Extraordinary Resolution is binding upon all                the                Noteholder whether present or not present at such meeting and each                of the                Noteholder is bound to give effect to any such Extraordinary Resolution.                The passing of any such resolution is conclusive evidence that the                circumstances justify the passing of such                resolution. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16 | The                expression “Extraordinary Resolution” means a resolution passed: |
|----|-------------------------------------------------------------------------------------------------|

|   | (a) | at                a meeting of the Noteholder convened and held in accordance with                these                provisions; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | by                a majority consisting of not less than 75% of the persons present                and                entitled to vote, voting upon a show of hands or if a poll is demanded                then by a majority consisting of not less than 75% of the votes given                on                such poll. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17 | Subject                to clauses 11.1 (*Certificates*)                and 18 (*Amendment                of Instrument*)                of the Instrument a written resolution signed by the holders of 90%                in                principal nominal amount of the Loan Notes for the time being outstanding                who are entitled to receive notice of meetings in accordance with                these                provisions is valid and effective as an Extraordinary Resolution.                Such                written resolution may be contained in one document or in                counterparts. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18 | Any                Noteholder or their proxy may validly participate in a meeting of                the                Noteholder by conference telephone or other form of communication                equipment if all persons participating in the meeting are able to                hear and                speak to each other throughout the meeting. A person so participating                is                deemed to be present in person at the meeting and is counted in a                quorum                and is entitled to vote. Such a meeting is deemed to take place where                the                largest group of those participating is assembled or, if there is                no group                which is larger than any other group, where the chairman of the meeting                is. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19 | Minutes                of all resolutions and proceedings at every meeting will be made                and                entered in books provided by the Company. Any such Minutes purporting                to                be signed by the Chairman of the meeting at which such resolutions                were                passed or proceedings held or by the Chairman of the next succeeding                meeting of the Noteholder is conclusive evidence of the matters contained                in such minutes and until the contrary is proved. Every such meeting                in                respect of the proceedings of which Minutes have been signed is deemed                to                have been duly convened and held and all resolutions passed to have                been                duly passed. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**EXECUTED      **
**DELIVERED**

**METAL      SANDS LIMITED**

| /s/ Trevor                        Jones | Director |   |   |   |
|----------------------------------------------|----------|--------|--------|--------|
|                                              |     |   |        |   |
| /s/ Alan Jowell                         | Director |   |   |   |
|                                              |     |   |   |   |

----