January 27, 2011 The attached scrap specifications are designed to provide you with our requirements so we can handle and use your scrap safely and maintain the chemistry control required to produce a consistent product. These revised specifications are effective January 27, 2011 and the changes are in bold text and documented on the last page of the specification. The revisions in this specification are requirements for advance approval for some types of scrap or shipping methods, the requirement to band cardboard and plastic barrels on skids and shipping methods which will lead to deductions. This letter also serves as a reminder of the notice sent to all scrap metal suppliers on April 26, 2004, that any material received which is not properly tagged according to item L in Section 6, will result in a deduction from your scrap settlement and possibly a material rejection. If you need any additional information, please call. Sincerely, Michael F. McInerney Metal Procurement and Traffic Manager D:\106739300.doc CURRENT REVISION DATED: 1/27/2011 Page 1 of 5 REPLACES PREVIOUS REVISION DATED 1/12/2011 Chase Brass and Copper Company, LLC: Specifications for Incoming Scrap 1. CHEMISTRY SPECIFICATIONS - LEADED BRASS ALLOYS The following trace elements are restricted to the limits shown because of operational problems they create 1: Element Name Symbol Limit (%) Aluminum Al 0.01 Antimony Sb 0.025 Bismuth Bi 0.02 Cadmium Cd 0.01 Iron Fe 0.25 Manganese Mn 0.007 Nickel Ni 0.10 Silicon Si 0.007 Tin Sn Sum of all other unnamed elements* 0.25 0.025 * Including but not limited to the sum of any other elements (arsenic, beryllium, tellurium, etc.), none of which may exceed 0.01% individually Free iron and steel may not exceed 0.50% as determined by a magnetic separation test. Free aluminum and aluminum alloys may not exceed 0.02% as determined by a chemistry test. FOOTNOTE 1 - Please note that all domestic mills are producing brass rod that is well below these chemistry limits. Reasonable care in segregation and processing of scrap will prevent rejections. 2. CHEMISTRY SPECIFICATIONS – ECO BRASS® ALLOY The following trace elements are restricted to the limits shown below because of operational problems they create: Element Name Symbol Limit (%) Aluminum Al 0.01 Antimony Sb 0.025 Bismuth Bi 0.01 Cadmium Cd 0.01 Iron Fe 0.10 Lead Pb 0.09 Manganese Mn 0.01 Nickel Ni 0.10 Phosphorus P 0.15 Tin Sn Sum of all other unnamed elements* 0.20 0.025 * Including but not limited to the sum of any other elements (arsenic, beryllium, tellurium, etc.), none of which may exceed 0.01% individually Free iron and steel in ECO BRASS scrap may not exceed 0.20% as determined by a magnetic separation test. Free aluminum and aluminum alloys may not exceed 0.02% as determined by a chemistry test. D:\106739300.doc CURRENT REVISION DATED: 1/27/2011 Page 2 of 5 REPLACES PREVIOUS REVISION DATED 1/12/2011 3. CHEMISTRY SPECIFICATIONS – BARE BRIGHT, CATHODE The following trace elements are restricted to the limits shown because of operational problems they create: Element Name Symbol Limit (%) Copper Cu 99.9 minimum Cadmium Cd 0.001 Lead Pb 0.001 4. CHEMISTRY SPECIFICATIONS - #1 COPPER The following trace elements are restricted to the limits shown because of operational problems they create: Element Name Symbol Limit (%) Copper Cu 99.5 minimum Aluminum Al 0.01 Bismuth Bi 0.01 Cadmium Cd 0.01 Iron Fe 0.10 Lead Pb 0.09 Manganese Mn 0.01 Nickel Ni 0.10 Phosphorus P 0.15 Tin Sn 0.20 Sum of all other unnamed elements* 0.025 * Including but not limited to the sum of any other elements (arsenic, beryllium, tellurium, etc.), none of which may exceed 0.01% individually 5. CHEMISTRY SPECIFICATIONS - #2 COPPER The following trace elements are restricted to the limits shown because of operational problems they create: Element Name Symbol Limit (%) Copper Cu 99 minimum Aluminum Al 0.01 Antimony Sb 0.025 Bismuth Bi 0.02 Cadmium Cd 0.01 Iron Fe 0.25 Lead Pb 0.25 Manganese Mn 0.007 Nickel Ni 0.10 Silicon Si 0.007 Tin Sn 0.25 Sum of all other unnamed elements* 0.025 * Including but not limited to the sum of any other elements (arsenic, beryllium, tellurium, etc.), none of which may exceed 0.01% individually #2 Copper bar / wire must be free of all coatings, enamels and plating in order to meet this specification. See item S in Section 4. D:\106739300.doc CURRENT REVISION DATED: 1/27/2011 Page 3 of 5 REPLACES PREVIOUS REVISION DATED 1/12/2011 6. SHIPPING SPECIFICATIONS The acceptable method of shipping chips is to load them loose on the trailer with any solids in containers at the tailgate end. The following shipping methods are unacceptable to our operation because of material handling problems they create: A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. Solids mixed with chips Boxes and barrels stacked two or more high Solids at the front end of a chip load Bundled solids stacked in a hazardous manner Open top trucks/allowing rain and snow on material Dump trailers (by arrangement only) Broken boxes Cardboard / plastic barrels not on skids (barrels on skids must be banded together) Barrels, boxes or crates with anchored / nailed / sealed lids Loose or unbundled rod Returned rod under chips Drums or pallets that are not tagged with shipper's name, SFC order number, alloy, gross, tare and net weights will result in a deduction. Allowable trailer length is 53-foot maximum for loose turnings. Refrigeration Trailers (Reefer trailers) of any length are not acceptable to use for loose turnings. Barrels that do not have oil drainage holes at the bottom D:\106739300.doc CURRENT REVISION DATED: 1/27/2011 Page 4 of 5 REPLACES PREVIOUS REVISION DATED 1/12/2011 7. UNACCEPTABLE MATERIAL The following materials are unacceptable to our operation because of incompatible composition or shape with regard to our handling system: A. B. C. D. E. F G. H. I J. K. L. M. N. O. P. Q. R. Excessive oil / moisture content or free-standing oil / coolant / water of any form in the bottom of barrels and other liquid-tight containers Plastic caps, metal/nonmetal composites, or tire stems Steels or other nonferrous alloys mixed with plated brass Tramp materials, heavy oil, or chips briquetted into brass alloy bales All closed or open shapes which will hold liquids including ALL PIPE OR TUBING WITH BOTH ENDS CRIMPED CLOSED EDM wire, loose or briquetted without foil Ammunition smaller than 20 mm or 20 mm not fired, cleaned and popped Very large bundled solids Highly corroded or oxidized tubes, pipes, or machined part Wiry/stringy/needle-like chips MUST BE IN BOXES Material with excessive dirt Excessively fine chips or millings Briquettes which are loosely packed and fall apart easily Screen material Plastic-coated brass, brass with rubber o-rings, gaskets, etc. on the pieces Plated scrap Coated, enameled and plated copper bar and wire IMPORTANT NOTE RELATED TO SCRAP METAL. Copper alloys containing any elements in amounts greater than stated on the applicable specification referenced on our purchase order or this standard shall be subject to rejection. THIS SPECIFICATION DOES NOT APPLY TO AGGREGATE CONCENTRATIONS FOR THE ENTIRE LOAD; the presence of individual pieces exceeding the applicable specification will subject the entire load to rejection. In the event out of specification materials are not detected in the normal course of incoming quality inspections, Chase Brass & Copper reserves the right to hold the supplier of the non-conforming materials wholly responsible for any and all costs and expenses (including, but not limited to, material costs, equipment cleaning/replacement, regulatory activities and legal fees), resulting from, or associated with, the contaminated materials entering our process and product. EFFECTIVE DATE: APPROVED: January 27, 2011 M.F. McInerney Metal Procurement Manager Larry Muller Manager, Metallurgy & Technical Services Chase Distribution: Brad Bruot, Phil Moody, Stacy Roth, Deb Worman, Lab, Truck Dump, Foremen (Notebook), Controlled Document Master Book, Quality Manager Master Notebook, Regional Sales Managers (Ryan Baird, Kathy Matlinga, Mark Ogden, Paul Schneller, Dave Streich, Robin Fishburn), Inside Sales (Tom Christie, Andy Grant, Heather O’Neal, Jim Palmour, Susan Peters, Julie Wonderly, Karen Wells) REVISIONS NOTED IN BOLD: Corrected reference on Page 1, paragraph #3 for labeling of scrap; updated distribution list to include Inside Sales and Regional Sales Managers. D:\106739300.doc CURRENT REVISION DATED: 1/27/2011 Page 5 of 5 REPLACES PREVIOUS REVISION DATED 1/12/2011