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Indonesian_Coal_Mine_Summary_JW_APR_09

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					“Truba”
1) Introduction “Truba” is a 140 million steam coal resource located in South Sumatera. The owners have completed over 11,000m of drilling and are entering the last stage of pre-production activities with a view to start production in the second half of 2009 at 25MT over 11 years how ever this rate could be doubled. 2) Location Kecamatan Lawang Kidul, Kabupaten Muara Enim, South Sumatera Province. 3) Property and Permits Total 1,587 hectares Exploitation Mining License w 4) Reserve Base  Sizeable resources of 140 million tonnes.  8 coal seams, up to 20 meter thickness.  Low average stripping ratio 1 : 1.9

5) Coal Quality  Good coal quality.  Coal Calorie : average 5800 kcal/kg  Total Moisture : 28%  Total Sulphur : < 1%

6) Exploration More than 11,000 meter drilling over 132 drill holes  115 Open Holes  10 Core Holes  7 Geotech Hole  Detailed exploration conducted by PT Mintek Dendrill Indonesia

7) Logistics  Mine is located only 3 kilometers from provincial main road.  Distance from main road to nearest port is 130km  Railway is within a short distance as potential hauling route.  Jetty at Sungai Banyuasin that could accommodate 300-ft barge (8,000 tonnes). 8) Sale Price USD 75 million working capital to bring the mine into production for 70% ownership of mine.

„IBP‟
Location : Kecamatan Kembang Janggut, Kabupaten of Kutai Kertanegara, Province of Kalimantan Timur : Jakarta - Balikpapan by 2 – hrs flight. Balikpapan – Samarinda – Kotabangun is 209 Km, 6 hours drive Kotabangun – location is 54 Km, 2,5 hours by speedboat. : Exploitation License : 2,700 Ha Exploration License : 4,993 Ha

Accessibility

Area

Permits and License : a. Mining License : 1. Exploitation License for 2,705.63 Ha, valid for 20 years. 2. Environtmental Impact Analysis (AMDAL) Permits 3. Exploration License for 4,993 Ha 4. General Survey Permit (KP PU) for 4,993 Ha,

b. Forestry License : 1. Recommendation from Governor of Kalimantan Timur Province c. Jetty License : 1. Not available. d. Site License (Ijin Lokasi for infrastructure outside concession) : 1. Not available.

1. Exploration Geomapping PT. IBP has conducted preliminary and detailed exploration. The coal concession lies within coal bearing formations, namely : Balikpapan Formation. Geological map of the whole concession is available showing all coal outcrops.

Coal Outcrops & Seam During preliminary exploration a total of 63 coal outcrops have been mapped. Based on the outcrop data DP has produced a coal correlation map. Based on outcrops found there is 2 seams which average 1-4m thickness and 8 – 12m thickness, dip of the seams is 5-15 degrees. No 1 2 Seam A B Thickness (m) 1.00 – 4.00 8.00 – 12.00 Strike/Dip (degree) N 320 – 100E/5-15 N 320 – 100E/5-15

Test Pits No record of test pits available. Drilling & Geophysical Logging No 1 2 3 4 Item Bore hole (each) Spacing (m) Total Depth (Lm) Avg. Drilling Depth Preliminary Expl. 20 350 – 850 568 80 – 100 Detail Expl. 57 250 3350 30 - 85 Total 77 250 – 850 3918 30 - 100

Geophysical logging on 65 bore holes gas been completed. 2. Laboratorium Analysis or Coal Quality Coal samples both from outcrop and drilling samples has been performed at reputable labs, such as PT Sucofindo or PT Geoservices. IBP declare the typical Coal Quality of the Mine Concession as:
No 1 2 Quality Maximum Minimum TM,% AR 46.41 34.33 IM,% ADB 16.90 15.74 Ash,% ADB 3.48 3.21 VM,% ADB 45.63 45.16 FC,% ADB 35.87 35.70 TS,% ADB 0.28 0.17 CV,Cal/gr ADB 5194 5576 HGI 60 60

3. Coal Resources and Reserve IBP declare the resources in the area of 2,700 Ha to be 70MT measured:
Measured (Mio Ton) 70 Indicated (Mio Tons) 30 Inferred (Mio Tons) 20 Total (Mio Tons) 120

Mine Layout, Access & Infrastructure

Stockpile IP

Belayan River

The coal flow from the pit to open sea (anchorage points) are : Pit – Stockpile and Jetty Pakar Muara Muntai – Muara Bangun thru Belayan River Muara Bangun – Tenggarong thru Mahakam River Tenggarong – Samarinda thru Mahakam River Samarinda – Muara Jawa thru Mahakam River Total distance Pit – open sea (anchorage point) : : : : : 24 Km 54 Km 71 Km 43.5 Km 49.5 Km

: 242 Km

The private coal hauling road from pit to Jetty Pakar about 24 Km will be established. The Jetty at Pakar village will be established by IBP with the following parameters : - Area 10 Ha - 3 -8 meter draft - Barge capacity 270 feet ( 5000 Ton) - Plan to equipped with 6 loading conveyor - 750 Ton/hours loading rate

„DP‟
Legal & Administration Profile Project Location : Districts of Sangatta and Bengalon, Regency of East Kutai, Province of Kalimantan Timur

Area Coverage : Exploitation License: 4,923 Ha Exploration License: TBA Permits and Licenses:  Mining Authorizations and Permits:  Exploitation Authorization: dated 28 January 2008  Permits to establish exploitation facility: dated 26 February 2007, valid for 1 year.  Exploration Authorization: No. SIUP dated 23 January 2003 Forestry Permit:  Dinas Kehutanan (Forestry Berau): dated 10 March 2008. Jetty Permit: rd  3 Jetty alternatives are available, a 3 party jetty can be used if an agreement can be reached if the other 2 alternatives are chosen then jetty permits will be required. Infrastucture Construction Permit (Permit for mine infrastructures contsruction outside concession area):  Site license for Jetty and Coal Hauling road: NA or TBA

 



Exploration  Geological Mapping Based on data provided by (DP), surface mapping generated a geological map and identified coal outcrops within the concession area. Two coal bearing geological formations are present in the concession area, Kampung Baru Formation and Balikpapan Formation. The concession area is near PT. Kaltim Prima Coal (KPC) concessions. KPC which is one of the biggest coal producers in Indonesia with production well in excess 20 Mt per annum.  Coal Outcrops & Coal Seams The outcrops identified indicate that there are 6 coal seams present in the concession and are summarized as follow: No. 1 2 3 4 5 6 Seam A B C D E F Thickness (m) 1.10 – 2.00 0.30 – 2.30 1.20 – 2.10 1.20 – 5.20 2.30 – 4.80 0.30 – 1.00 Strike-Dip/Degree N 20 – 40E/12-15 N 20 – 40E/12-15 N 20 – 40E/12-15 N 20 – 40E/12-15 N 20 – 40E/12-15 N 20 – 40E/12-15

Note: There are only 9 coal outcrops reported in the paper by PT. DP. More outcrops may be present, but a detailed map on this is not provided, instead crop-line or sub crop-line maps are provided to produce correlations of the coal seams more likely.  Test Pits Data for five test pits has been provided. Test pits were dug to obtain coal strike-dip, thickness and to extract fresh coal samples.



Drilling Number of drill holes Total depth Average drilling depth

: 43 holes : 1,967 m (Length) : 30m – 60m



Topography Map Detail topographical map has not provided. For indicating potential resource quantity, a topographical map of 1:50,000 scale is required. However, for a more accurate mine reserve calculation, topographical map of at least 1:1,000 scale is essential.

Coal Quality (Lab. Analysis) A number of coal samples both from outcrops and drilling samples were analyzed, data is summarised below. A coal sample analysis from a 50Ha Mine Block Test (MBT) area was also provided. The MBT is an area allowed for bulk sample extraction. TM, % AR 26.7 22.1 23.1 23.0 23.4 IM,% ADB 12.2 13.1 13.0 14.9 14.8 Ash,% ADB 1.1 0.7 1.5 0.8 1.0 VM, % ADB 38.9 42.0 38.4 40.2 39.6 FC,% ADB 47.8 44.2 46.6 44.1 44.5 TS,% ADB 0.90 1.85 0.74 0.56 0.72 CV, Cal/gr ADB 5806 6053 6003 5960 5802

Seam A B C D Typical

Sample Code CTP-03/06/05 CTP-02 A.B/06/05 CTP-01 A B/06/05 OC-01/06/05 Mine Block Test

HGI 57 48

Typical Coal Quality of Mine Concession TM, IM,% No Quality % ADB AR 1 2 Maximum Minimum 29.8 21.7 15.6 13.3

Ash,% ADB 4.3 0.9

VM, % ADB 40 35

FC,% ADB 45 40

TS,% ADB 1 <1

CV, Cal/gr ADB 6300 5500

HGI

Coal Resources / Reserves Mine Block Test of 50Ha area is providing a reserve for bulk sampling purposes; the reserve calculation carried out by two independent consultants provided the following results: By Borneo Consultant Pit Name Coal (Ton) DU CB DS TOTAL 14,120 495,630 17,080 526,830

Overburden (bcm) 91,240 2,983,210 108,360 3,182,810

SR (bcm/ton) 6.5 6.0 6.3 6.0

By Mandala Sena Pit Name Coal (Ton) DU CB DS TOTAL 14,130 464,430 17,080 495,640

Overburden (bcm) 91,230 2,906,080 108,350 3,105,660

SR (bcm/ton) 6.5 6.3 6.3 6.3

DP estimated a potential mineable coal reserve of 37 million tons, taking a small 10% and 5% respectively of its assumed “proven and probable resources”. Deposit Area South North Total 220 Proven (million ton) 220 Probable (million ton) 162 169 331 Total (million ton) 382 169 551

There are 3 alternative routes summarized as follow: Option Distance from Pit – Jetty (km) 10+2.5 = 12.5 Coal hauling road condition 10 Km asphalt public road & 2.5 Km gravel private road Stockpile Available, Cap. 20,000 t Jetty Capacity 200 feet (3,500 ton), 5 hours transshipment to open sea. 200 feet (3,500 ton), 5 hours transshipment to open sea. 350 feet (8,000 ton), 2 hours to open sea.

1

2

7.5+4.7 = 12.2

7.5 Km asphalt public road & 4.7 Km gravel private road 17.2 Km private road to be established

to be established to be established

3

17.2

„ANCO‟
Location : Kecamatan P Derawan, Kabupaten of Berau, Province of Kalimantan Timur : Jakarta – Balikpapan by 2 – hrs flight. Balikpapan – Tanjung Redeb by 1 hour flight Tanjung Redeb – Location 45 minutes drive : Exploitation License : 9,339 Ha Exploration License : ? Ha

Accessibility

Area

Permits and Licenses : a. Mining License : Exploitation License for 9,339 Ha, dated 01 August 2002, valid for 20 years. Transport & Sales License, dated 11 March 2004, valid for 20 years. b. Forestry License : Not available. c. Jetty License :

Special Jetty License (DUKS) for Coal, dated 27 August 2003, valid for unlimited time. Letter from Head of Tanjung Redeb Port, dated 15 July 2003. d. Site License (Ijin Lokasi for infrastructure outside concession) : Stockpile License for 10 Ha. 1. Exploration Geomapping Coal Outcrops & Seam No 1 2 Seam 1 2 Thickness (m) 4.50 4.10 Strike/Dip (degree) N 91 - 340 E/5-18 N 91 - 340 E/5-18

Test Pits No record of test pits. Drilling & Geophysical Logging No 1 2 3 4 Item Bore hole (each) Spacing (m) Total Depth (Lm) Avg. Drilling Depth Preliminary Expl. 90 100 – 200 3,000 30 – 70

No Geophysical logging. 2. Laboratorium Analysis or Coal Quality Coal samples both from outcrop and drilling samples have been analysed at PT Geoservices or PT Sucofindo. ACM full coal quality parameters have not yet been provided.
No 1 2 Quality Maximum Minimum TM,% AR IM,% ADB Ash,% ADB VM,% ADB FC,% ADB TS,% ADB CV,Cal/gr ADB 5400 5700 HGI

3. Coal Resources and Reserve ACM declare mineable reserves of 86 Million Tons. 4. Mine Layout, Access & Infrastructure Pit – Jetty Jetty – anchorage point at open sea : 2 Km : 2- 3 Km

Open sea

Jetty of ANCO

„BBP‟
Location : Kecamatan Tabing , Kabupaten of Kampar, Province of Riau : Jakarta – Pekanbaru by 2 hrs flight. Pekanbaru – Location is 135 Km or 3 hours drive or Jakarta – Padang by 2 hrs flight Padang – Location is 180 Km or 5 hours drive : Exploration License : 5,000 Ha

Accessibility

Area

Permits and Licenses : a. Mining License : Exploration License for 5,000 Ha, dated 23 September 2008, issued by Bupati Kampar. b. Forestry License : Not available. c. Jetty License : Not available d. Site License (Ijin Lokasi for infrastructure outside concession) : Not available 1. Exploration

Geomapping PT. BBP has undertaken preliminary exploration such as geomapping, test pit, outcrops mapping. The coal concession lies in coal bearing formation, namely : Sihapas Formation. Coal Outcrops & Seam No 1 2 3 Area Gelugur Kototuo
Lubuk Ulat Rokan

No of Seam 3 1 1

Thickness (m) 6-8 6-12 >6

Strike/Dip (degree) N 270 -320 E/ ? N 270 -320 E/ ? N 270 -320 E/ ?

Test Pits No record of test pit. Drilling & Geophysical Logging No Drilling data No Geophysical logging. Topography Map No topography map. 2. Laboratorium Analysis or Coal Quality Coal samples from outcrop has taken and analysis at preferable laboratorium, such as PT Sucofindo.
No 1 2 3 Sample No 1 2 3 TM,% AR 7.67 9.89 5.61 IM,% ADB 4.58 5.24 4.90 Ash,% ADB 0.90 4.20 5.64 VM,% ADB 35.06 33.68 38.93 FC,% ADB 40.83 48.80 41.73 TS,% ADB 1.01 1.11 1.07 CV,Cal/gr ADB 7250 6854 7158 HGI 48 57 50

3. Coal Resources and Reserve ACM declare geological coal reserve, based on assumption, of 61.37 Million Tons. C. Mine Layout, Access & Infrastructure Pit – Pekanbaru – Jetty at Dumai Pit – Padang – Jetty at Telukbayur : 265 Km : 225 Km

Coal Concession

Jetty of Pelindo at Dumai

Jetty of Pelindo at Telukbayur

In this region some coal mining companies haul the coal from Pit to Dumai or Telukbayur using small truck ( 6 – 10 Ton) thru a public sealed road. The company can use the Pelindo Jetty both in Dumai or Telukbayur based on tonnage loaded to the vessel. The Pelindo Jetty in Dumai can accommodate vessels with 50,000 ton capacity, meanwhile the Pelindo Jetty in Telukbayur can accommodate 35,000 Ton.

„RG‟
Location Area : Regency of Barito Utara, Province of Central Kalimantan : Total area of 24,358 ha consisting of 5 KPs,

Permission and License 1. Exploitation License 2. Exploration License 3. Exploration License 4. Exploration License 5. Exploration License 1. Exploration : 4,158 Ha. : 5,061 Ha : 5,051 Ha : 5,046 Ha : 5,042 Ha

Mapping of the 4,158 exploitation block only has identified over 60 coal outcrops with thickness ranging from 20cm to >2.1m based on out crop data a resource of 10 million tonnes has been calculated RG has also built its own jetty stockpile facility on 38 ha with a weigh bridge, 150 MT/hour crushing plant, 500MT/hour loading conveyor and 250ft barge capacity, this facility is being offered as part of the project acquisition Distance from Mine to Jetty : 39 Km

Distance from Jetty to Taboneo (anchorage point) : 385.1 Km Barge Capacity Specification:  Total Moisture  Volatile Matter  Ash Content  Fixed Carbon  Total Sulfur  Gross Calorific Value
OFFERING PRICE

: 270 ft. : 17.0 – 20.0 % : 36.53 – 43.20 % : 2.06 – 7.14 % : 40.08 - 43.66 % : 0.25 - 1.20% : 5800 - 6100 Kcal/Kg.

Take over : USD 10,000,000

„JKG‟
Location Area : Sandaran (District of Kutai Timur) : 15,000 Ha

Permits and Licenses : a. Mining License : Exploration IUP for 15,000 Ha, dated 19 December 2008. 1. Exploration PT. JKG has undertaken preliminary exploration such as geomapping, test pit, outcrops mapping and drilling. Coal Outcrops & Seam A total of 20+ outcrops have been mapped with thickness of 20cm to 2.3m The following drilling has been undertaken No 1 4 Item Bore hole (each) Avg. Drilling Depth Preliminary Expl. 12 30 – 70

Seam thickness from bore hole data ranges from 2m to 16.5m 2. Laboratorium Analysis or Coal Quality Coal samples from outcrop has taken and analysis at preferable laboratorium, such as PT Sucofindo.
No 1 2 3 4 5 6 TM,% AR 31.66 30.94 32.56 29.44 31.71 34.58 IM,% ADB 16.16 16.71 14.42 16.62 15.12 17.70 Ash,% ADB 4.44 3.04 1.39 3.52 6.40 2.13 VM,% ADB 40.73 39.59 42.45 39.25 40.42 40.94 FC,% ADB 38.67 40.66 41.74 40.61 38.06 39.23 TS,% ADB 1.63 0.33 0.62 1.73 1.89 0.77 CV,Cal/gr ADB 5,457 5,525 5,827 5,659 5,416 5,577 HGI 65 54 55 43 65 48

3. Coal Resources and Reserve A total coal reserve has not been calculated yet but based on out crop and drilling data there is considerable potential to find a 100MT+ deposit C. Mine Layout, Access & Infrastructure Mining Site Distance Balikpapan City to site, 40 minute by air to Tg Redeb, then 10 Hours by road to biduk-biduk, 30 minute by speed-boat to mine site. Hauling & Transshipment Mine to Stockpile 3 KM, Jetty to M.Vessel 5KM Mother Vessel Loading Point Tanjung Mangkaliat
OFFERING PRICE

Investor to inject US2.5m working capital to bring the mine into production, owner to take a US$7 royalty from production for a 20 year period

„BJPA‟
Location : Kec. Muara Wis, Kab. Kutai Timur, East Kalimantan Area : 2,993 Ha Permission and Validity 1. Penyelidikan Umum (SKIP) : 540/86/KP-PU/DPE-IV/VII/2006 Valid until 13 July 2009 2. Exploration No : 540/05/KP_Er/DPE_IV/VII/06 Valid until 13 July 2009 Total Deposit Measured : 15 Millon Ton Lab Analysis by Sucofindo:  Gross Calorific Value : 7,512 Kcal/Kg

     

Total Sulfur : 0.8 % Total Moisture : 7.9 % Ash Content : 3.7 % Volatile Matter : 39.4 % Fixed Carbon : 53.9 % HGI : 51

Mining site to Jetty : 12 Km Barge Capacity : 300 Ft OFFERING PRICE Take Over : IDR 21,000,000,000 (Twenty One Billion Rupiah)

„AKG‟
Location : Kab. Kutai Kartanegara, Propinsi Kalimantan Timur. Area : 4,978 Ha Permission and Validity 1. Penyelidikan Umum (SKIP) : 540/32/KP-PU/DPE-IV/IV/2006 Valid untul 2009 2. Exploration : Valid until 2010 Items above will be showing at Due Diligence. Measured Deposit : 23,600,000 MT Distance from Mine to Jetty : 15 Km, 4 hr to the open sea Barge Capacity : 300 ft. Specification: by Geoservices  Total Moisture : 33.36 – 41.74 %  Volatile Matter : 33.21 – 42.32 %  Ash Content : 3.14 – 6.82 %  Fixed Carbon : 34.73 - 47.84 %  Total Sulfur : 0.37 %  Gross Calorific Value : 6000 - 6500 Kcal/Kg. OFFERING PRICE Take over: IDR 30 Billion (Thirty Billions Rupiah).

„RK‟
Location : Kab.Kutai Kartanegara, East Kalimantan. Access : From Mining Area to Jetty = 50 Km (Mahakam River) Barge Capacity : 300 ft. Area : 2,600 Ha. Permission and Validity 1. Exploration No : 540/93/KP-Er/DPE-IV/VII/2006 2. Exploration No : 540/048/KP_Ep/DPE_IV/IX/2007 Valid until 3 September 2012 (attached) Item 1 & 2 will be showing at Due Diligence

Total Mine Able Reserves : 30 Mio MT Lab Analysis by CCI Surveyor:  Total Moisture: 19.7 %  Proximate Analysis:  Ash Content : 4.7 – 5.3 %  Volatile Matter : 44.9 – 47.5 %  Fixed Carbon : 49.7 – 52.5 %  Total Sulfur : 0.37 – 0.40 %  Gross Calorific Value : 6,865 – 7,252 Kcal/Kg. Mine Able Measured Deposit : 3,361.112 Ton / 300 Ha. OFFERING PRICE Take over : IDR 55 Billion (Fifty five Billion Rupiah).

„TMJ‟
Location : Kab. Pasir, Propinsi Kalimantan Timur. Area : 1,992 Ha Permission and Validity 1. Exploitation : 545/06/EKSPLOITASI/EK/2007. Valid until 25 June 2012 2. Transportation & Sales : 545/03/PP/EK/XI/2007 Valid until 25 June 2012 Measured Deposit : 18,000,000 MT Distance from Mine to Jetty : 35 Km, 3 hr to the open sea Barge Capacity : 300 ft. Specification:  Total Moisture : 11.6 – 15.74 %  Volatile Matter : 36.53 – 46.2 %  Ash Content : 2.06 – 5.14 %  Fixed Carbon : 37.08 - 46.66 %  Total Sulfur : 0.45 %  Gross Calorific Value : 6000 - 6500 Kcal/Kg. OFFERING PRICE Royalty: USD 5 / Ton. License Name PT. BARA SETIU INDONESIA Location Pasir Mayang (District of Kuaro) Exploitation No. 545/085/EX/VIII/2006 Transportation & Sales No. 545/091/PP/EX/IV/2007 Concession Area 5,000 Ha Calories GCV Raw 6,000 crush 5800-5600 Production Capacity

24 working days with 18 hours crush 300mt per hour Resources 116 Million Metric Ton Facility 2 units - Crusher with 2 units - Loading Conveyer System & Jetty. 62 units - dump trucks and 42 heavy equipments. Mining Site Distance Balikpapan city to site 4 hours, 2 hours by ferry and 2 hours by vehicle. Hauling & Transshipment 3km - Mine to Stockpile at site of Jetty area. Jetty to Mother Vessel Loading point - 8 hours Barge Loading By conveyor system with capacity 16,000 in 18 working hour days. Mother Vessel Loading Point Balikpapan Coal Terminal with loading capacity 40,000mt in 24 working hours.

License Name PT. SINAR KUMALA NAGA Location Kutai (District of Kutai Lama) Exploitation No. 540/48/KP-D/DPE-IV/V/2006 Concession Area 6,200 Ha Calories GCV Raw 6,000 - 5800 crush 5500 – 5300 Production Capacity 24 working days with 18 hours - crush 250mt per hour Resources 219 Million Metric Ton

Facility Under development Mining Site Distance Samarinda City to site 2 hours by vehicle. Hauling & Transshipment Mine to Stockpile 3km at site of Jetty area. Jetty to Mother Vessel Loading point 8 hours. Mother Vessel Loading Point Muara Jawa

License Name PT. PUTRI NAGARI SAKTI Location Sengata (District of Kutai Timur) Exploitation No. 540/17/KP-D/DPE-IV/V/2006 Concession Area 11,300 Ha Calories GCV Raw 7,000 – 6,800 crush 6500 – 6300 Production Capacity 24 working days with 18 hours crush 250mt per hour Resources

265 Million Metric Ton Facility Under development Mining Site Distance Samarinda City to site 14 hours by vehicle. Hauling & Transshipment Mine to Stockpile 15KM - Stockpile to Jetty 5KM. Jetty to Mother Vessel Loading point 8 hours. Mother Vessel Loading Point Muara Jawa

„CSU‟
 The CSU block is 7,443 ha in size and located in Sangkuliran District, Kutai Timur Regent, East Kalimantan Province it is 50 miles from Sengatta and approximately 150 miles by road from Samarinda the capital city of East Kalimantan. The status of the KP is exploration which was issued on 18 March 2008 The nearest port is approximately 20 miles to the southeast, which would be suitable as a stockpile and loading port to serve a mother vessel/ panamax. Exploration conducted during 2004 (which only covered 1,00ha) within the Northern part of the block has defined an indicated resource of 8.8 million tonnes based on results >0.90m thickness Exploration activities included geological mapping of 22 coal outcrops with thickness between 0.40m to 3.60 meters with a degree of inclination of 9’ to 42’ 14 bore holes were drilled in 11 locations with indications of 9 seams with thickness ranging from 1.10 m to 3.60m 4 major coal seams were defined with thickness varying from 0.90m to 3.60m, and dip of 5 to 57 degrees Coal quality varies from 4,800kcal to 5,500kcal air dried basis; 20%-22% moisture as received; 2.6% - 8.7% ash; 1.3%-2.95% sulphur.

 

RESOURCE SIZE AND QUALITY



   

Correlation between bore holes: DH-08-DH-09, DH-10, DH-11, DH-12, DH-13, and DH-14.

DEAL TERMS



The vendors are seeking a US$150,000 option payment which would secure 3 months exclusivity in order to conduct due diligence, subject to a successful due diligence the sale price is US$8m for 100% take over.

“Daya Tuka”
1) Introduction Operating mine with exploitation permit, High CV coal of 6800 kcal/kg adb, with total resources of ~25 Million MT, has trade and transportation licenses. Production capacity of 30,000MT/month. All previous exploration work completed by BHP. 2) Location Kerang Village, Tanah Grogot, East Kalimantan 3) Property and Permits  SKIP License of Preliminary Survey No: 545/14/PU/EK/X/2002, covered area of 1,996.92 ha;  Exploration permit , No 545/12/-Eksplorasi/E/I/2003, validity till 02 February 2004;  UKL/UPL (AMDAL = environmental analysis), number 180, year 2007;  Exploitation permit, Number 545/02-Eksploitasi/Ek/VII/2004, Validity till 19 June 2009 covered area of 333 ha;  Trade, and Transportation permit, Number 645/04/PP/Ek/IX/2004, Validity till 26 September 2009. 4) Reserve Base Based on BHP exploration data , coal resource calculation : Coal Thickness : 1.5 – 7 meter , in 5 seams (total of 9 seams)  Measured Reserves : 5.000.000 MT  Indicated Reserves : 7.000.000 MT  Inferred Reserves : 12.786.000 MT  Total Reserves : 24.786.000 MT 5) Coal Quality ADB Total Moisture Inherent Moisture (IM) % Ash Content % Volatile Matter (VM) % Fixed Carbon (FC) % Total Sulphur (TS) % Caloric Value (CV) cal/gr HGI Range 5.63-6.32 3.91-3.97 5.678.44 39.87-42.04 38.24-40.61 0.31-2.72 6,800-7,314 47-49

6) Exploration All exploration completed by BHP and available on signing of NDA and MOU 7) Logistics Transportation licences, distance to jetty port is 15 km. 8) Sale Price 40% is available for acquisition Owner would like to review all company credentials from interested buyers:

1. Company Profile 2. Financial Statement (recently), audited by Public Accountants

„ACK‟
1) Introduction PT ACK is an Indonesiam coal mining company which has been developing 2 coal mining prospects (ACK-1 & ACK-2) in West Kailmantan since 2005, it has recently converted to exploitation and plans to commence production in the second half of 2009. The ACK project borders the BMA (BHP Biliton and Mitsubushi ) Alliance

2) Location West Kutai, East Kalimantan Indonesia

3) Property and Permits 24,863 ha including 4,999 ha exploitation permit issued 6 June 2006

4) Reserve Base ACK-1 consisits of 3 coal prospect areas Linda, Lisa and Lintah Based on over 296 outcrops and boring data. The combined average coal seam thickness for the three zones is 3.5 m, 27.5 m and 7.5 m for Lintah, Lisa and Linda Zone’s, respectively. A conservative estimate of coal reserve in the Indicated Category puts the total mine able reserve at about 62 million tones or 77 million tones in both indicated Inferred Category. A more optimistic estimate puts the number in excess of 100 million tones.

ZONA NORTH EAST LISA
Thick Average (m) L 1.03 1.03 M 13.60 13.60 N 6.02 6.02 Down Dip (m) 400 100 400 200 400 200 Length (m) 3310 1420 2815 1084 2653 544 1.30 1.30 1.30 1.30 1.30 1.30 Reserve (tonnes) 1,772,836 Indicated Category 190,138 Inferred Category 19,907,680 Indicated Category 3,833,024 Inferred Category 8,304,951 Indicated Category 851,469 Inferred Category

Seam

SG

Remark

ZONA SOUTH EAST LISA
Thick Average (m) M 11.03 11.03 O 2.10 2.10 P 1.20 1.20 Down Dip (m) 400 200 400 100 200 100 Length (m) 4334 1906 2762 2273 2524 1696 1.30 1.30 1.30 1.30 1.30 1.30 Reserve (tonnes) 24,858,090 Indicated Category 5,466,027 Inferred Category 3,016,104 Indicated Category 620,529 Inferred Category 787,488 Indicated Category 264,576 Inferred Category

Seam

SG

Remark

Reserve in Indicated Category Reserve in Inferred Category Total Reserve in Lisa Zone

58,647,150 tonnes 11,225,763 tonnes 69,872,912 tonnes

ZONA LINDA
Seam G Thick Average (m) 1.05 1.05 F 3.35 3.35 J 1.00 1.00 I 0.73 0.73 H 0.60 0.60 Down Dip (m) 200 100 200 100 200 100 150 100 100 100 Length (m) 2063 2857 2022 3448 1769 3806 1875 3115 1927 3378 SG 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 Reserve (tonnes) Remark

563,199 Indicated Category 389,981 Inferred Category 1,761,162 Indicated Category 1,501,604 Inferred Category 459,940 Indicated Category 494,780 Inferred Category 265,078 Indicated Category 293,589 Inferred Category 150,306 Indicated Category 263,484 Inferred Category

Reserve in Indicated Category Reserve in Inferred Category Total Reserve in Linda Zone

3,199,685 2,943,437 6,143,122

tonnes tonnes tonnes

ZONA LINTAH
Thick Average (m) A 0.30 0.30 B 0.66 0.66 C 0.71 0.71 D 1.10 1.10 E 0.75 0.75 Down Dip (m) 50 50 100 100 100 100 100 100 100 100 Length (m) 0 0 292 954 1047 1293 1040 1784 1067 1881 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 Reserve (tonnes) Indicated Category Inferred Category

Seam

SG

Remark

25,054 Indicated Category 81,853 Inferred Category 96,638 Indicated Category 119,344 Inferred Category 148,720 Indicated Category 255,112 Inferred Category 104,033 Indicated Category 183,398 Inferred Category

Reserve in Indicated Category Reserve in Inferred Category Total Reserve in Lintah Zone Total Reserve in ACK-1 Block

374,444 639,707 1,014,151 77,030,185

tonnes tonnes tonnes tonnes

5) Coal Quality A number of samples have been collected from the outcrops and analyzed at commercial laboratories. The following table provides a summary of the typical average of the samples for the three zones, Linda, Lintah and Lisa. The superior coal quality of Linda is easily recognizable visually. The coal quality of Linda is classified as High Volatile-A Bituminous to Medium Volatile Bituminous, which can be categorized as soft coking coal according to the ASTM (American Society for Testing and Materials) Ranks of Coal.

Parameter Total Moisture Proximate Analysis -Inherent Moisture -Ash Content -Volatile Matter -Fixed Carbon Total Sulfur Gross Calorific Value %ar

Unit

Zona Linda 7.24 2.24 2.81 27.67 67.28 0.39 7,565-7,986

Zona Lintah 11.20 7.50 1.51 25.22 55.14 0.25 6,250-6,500

Zona Lisa 29.42 16.65 0.82 42.18 40.35 0.14 5,640-5,864

%adb %adb %adb %adb %adb Kcal/Kg adb

6) Exploration All exploration data is available on signing of NDA and MOU

7) Logistics There are a number of ports available for loading including several established jettys such as Trubaindo

8) Sale Price USD $25 million

for 25%


				
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